Title
Approval of an Ordinance Relating to Utility Rates, Fees, and Charges
Recommended Action
Committee Recommendation:
The proposed rates and charges reflect recommendations from the Finance Committee and the Utility Advisory Committee.
City Manager Recommendation:
Move to approve on second reading, the Ordinance adopting the 2026 utility rates and general facilities charges.
Report
Issue:
Whether to approve on second reading, the Ordinance adopting the 2026 utility rates and general facilities charges.
Staff Contacts:
Gary Franks, Water Resources Director, Public Works Department, 360.753.8780
Mike Vessey, Drinking Water Utility Director, Public Works Department, 360.753.8318
Ron Jones, Interim Waste ReSources Director, Public Works Department, 360.753.8509
Presenters:
None - Consent Calendar Item.
Background and Analysis:
Background and analysis has not changed from first to second reading.
Utility Rates
The overall rate increase for 2026 City utilities is approximately 3.74%. For 2026, staff recommends:
* Drinking Water 3% Rate Increase
* Wastewater 3% Rate Increase
* Stormwater 7.5% Rate Increase
* Waste Resources 4% Rate Increase
* LOTT Alliance 3% Rate Increase
General Facilities Charges (GFCs)
GFCs are one-time fees charged to new development to reflect the cost and value of existing utility infrastructure. For 2026 staff recommends the following increases:
* Drinking Water GFCs: 5%
* Wastewater GFCs: 5%
* Storm and Surface Water GFCs: 5%
* LOTT Clean Water Alliance 5%
These GFCs will be included in an upcoming financial study. Proposed GFC increases are nominal for 2026 and will be updated with more information in 2027. GFCs are a one-time charge collected from new development. The charges reflect the financial value of the existing utility infrastructure and the benefits the system provides to new development.
A 50% GFC reduction for eligible low-income rental housing was implemented in 2024.
LOTT Clean Water Alliance Rate
L...
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