In another sign of the tough economic times, the Covington Water District announced a round of layoffs this week caused by a shrinking budget.

The district will lay off three full-time employees and four will drop to part time.

According to the Gwenn Maxfield, the district’s general manager, the layoffs were forced by falling revenues and to avoid an 8 percent rate hike.

Maxfield said there will still be a rate increase to customers from 2-3 percent.

“We are doing everything we can to control rates,” Maxfield said. “This is a very difficult issue, but we are really looking at controlling costs.”

Maxfield noted the slowed economy has hit the district hard with connection charges down significantly. Covington and the surrounding area went through a growth boom after 1997, but since the recession most building has come to a halt.

The general manager also noted conservation measures are working very well with residents using less water, which also means a drop in revenues.

A major expenditure facing the district in the next three years is a treatment plant mandated by the U.S. Environmental Protection Agency. The plant will treat drinking water from the Green River for the microorganisms cryptosporidium and giardia.

The district will participate in the construction of the plant with Lakehaven Utilities, Tacoma Water and the city of Kent.

According to Maxfield there are no problems at this time with the drinking water from the Green River, but the EPA will be requiring all surface water drinking sources to prepare for the treatment of these microorganisms.

Maxfield said by e-mail the district will be paying for about 11 percent of the total construction cost. A plant feasibility study with estimated design and construction costs will be coming in January.

“(The plant) will drive rates up regardless of development,” Maxfield said. “This year we have to do everything we can to control rates.”