Sequim council approves five-year water and sewer rate increases, indexes new-connection fees to inflation

The Sequim City Council voted 6-1 to approve a five-year schedule of rate increases for the city’s water and sewer utilities and a 3% annual adjustment to general facility charges that begins in 2026. The resolution passed after council discussion about long-term system funding and programs to reduce hardship for low-income households. Paul Busich, public works director, told the council the increases are meant to prevent a projected “financial cliff” for the utilities by covering rising operation, staffing and construction costs and by funding future capital needs, such as aging AC water mains. "Without rate increases, both utilities were falling off the cliff in a couple of years," Busich said. "These revenues keep us in compliance with state and federal regulations and avoid costly emergency repairs." The adopted plan sets sewer increases at 4.5% annually for five years beginning in 2026, water increases at 5.5% annually for five years beginning in 2026, and a 3% annual inflationary adjustment to GFCs to preserve developer-borne contributions for system expansion. Finance and public works staff presented modeled forecasts showing the effects of the schedule and said the model uses five years of actual expenses and a longer forecast to test sustainability. Councilors pressed staff about affordability and protections for residents on fixed incomes. Councilor Brandon Janisse cast the only No vote; other members voted to approve the resolution. Sue (Finance Director) described recent changes to the city’s low-income utility discount and said staff have simplified the application and been more proactive at the front counter; she reported about 55–60 customers are enrolled and that participation has roughly doubled in recent years. "We actually made the program much easier to apply for and to be awarded a low-income discount," she said, adding the discount can cut basic charges roughly in half for qualifying households. Staff also noted the city has installed AMI water meters and plans customer-facing software so residents can monitor usage and reduce bills. Council members who supported the increases said smaller incremental adjustments now are preferable to much larger emergency increases later; opponents warned of the cumulative burden on households that are already rent- or paycheck-constrained. The resolution is effective for budgeting purposes in 2026; staff said implementing the increases now allows the finance office to program the changes into next year’s budget and manage capital planning to avoid deferred maintenance and regulatory risk. The council instructed staff to continue outreach about the low-income discount and to track the financial model quarterly so the council can revisit rates if conditions change.