Issaquah committee trims stormwater capital plan, staff says rates can be eased to 6.25%

Issaquah — City staff on May 6 presented a revised 2027–2032 Capital Improvement Plan (CIP) stormwater section to the City Council Planning, Development and Environment Committee, saying the draft prioritizes repair and replacement work, defers some habitat and restoration projects, adds bridge-scour and permitting work, and lowers the near-term stormwater rate projection to 6.25 percent after reprioritization.

The CIP update covers 2027 through 2032 to align the plan with Issaquah’s new biennial budget cycle. Andrea Snyder, deputy city administrator, told the committee the presentation was “to review our 2 year update to the CIP, specifically on stormwater.” The Committee of the Whole will review the full CIP June 16, with possible adoption June 23.

Why this matters: the CIP is a planning document that informs future budgets and utility rates. Staff said revenues — especially general fund support and real estate excise tax (REIT) receipts — will not cover all projects in the first two years without prioritization or new funding. The committee’s discussion centered on reducing rate pressure on households while maintaining critical infrastructure.

Staff said the stormwater fund is now projected to require a 6.25 percent rate increase to cover operating costs and a reduced set of capital projects. “We were able to get the stormwater fund down to a 6.25% rate increase to cover operating and that sort of reduced capital list that we had discussed with Committee of the Whole,” Public Works Director Emily Moon said. Moon and utilities staff said they reached the lower rate by tightening scope, phasing larger projects, and focusing on projects with defined revenue sources or regulatory urgency.

Key changes in the stormwater program

- Added projects: analysis and permitting for the Tibbetts Manor Bridge and a new annual bridge scour repair program to address scour, debris and vegetation under small city bridges.

- Increased funding: the annual storm drain rehabilitation program was funded at a higher level to replace aging corrugated metal pipes and other degraded assets.

- Delayed or removed projects: Cabin Creek tributary stabilization enhancement (evaluated as stable after geotechnical review), Central Park bioswale (deferred to the annual rehab program if needed), and the West Village Creek sediment pond removal (tied to upstream work that another project eliminated from scope).

- Phased or pushed out projects: East Lake Sam Parkway conveyance work, Laughing Jacobs Creek channel enhancement (permit timing and grant alignment), Issaquah Highlands West 45 stormwater lift station rehab, and several low-impact development retrofit elements that lacked sufficient grant funds for immediate construction.

Staff noted one project, Squawk Valley Park, may move forward sooner because staff secured a substantial grant after the CIP draft was prepared. Staff said other projects dependent on grant funding will remain in the plan but may be shifted between years according to grant timing and permitting.

Funding and forecast context

Snyder explained the CIP is a planning tool, not a budget, and acknowledges uncertainty looking out six years. Staff identified gaps where anticipated funding does not match planned project costs, particularly in municipal facilities and transportation, and said general fund and REIT (real estate excise tax) revenues are already highly committed. Jillian Straub, management analyst, said the general fund historically contributes about $900,000 annually toward capital projects and that the CIP shows general fund and REIT are “overtapped” in early years.

Committee feedback and direction

Committee members praised the emphasis on maintenance and the effort to reduce the projected rate increase. Councilmember Zach Hall said he had “a deep appreciation to staff for turning 10% into 6 and a quarter. That is huge, right, for working families here who are stretching every dollar they earn over the next year.” Several council members asked staff to ensure projects that were removed or delayed remain visible to the council in an appendix or future-project list so the council can track them over time. Staff confirmed they maintain internal project inventories and spreadsheets and will continue pursuing grants and coordination opportunities.

Staffing and next steps

Staff noted capacity constraints in finance: Issaquah does not have an official finance director and the deputy finance director, Susie, has been filling multiple roles while the city recruits a finance director and a budget analyst. Snyder said the CIP will be considered by other committee panels next week and at the Committee of the Whole on June 16; possible adoption is scheduled for the June 23 council meeting.

Formal actions at the meeting

The committee approved the April 1, 2025, meeting minutes as corrected by unanimous consent. There were no formal votes on the CIP at this meeting; staff sought council feedback and will return with the full CIP for further committee review and a Committee of the Whole discussion.

What staff emphasized

Emily Moon said staff prioritized projects that address regulatory obligations, repair and replacement of degrading assets, and projects with clearer near-term funding. Matt Ellis, utilities engineering manager, summarized the bridge and scour work and described the storm drain rehab emphasis. Snyder reminded the committee that the Transportation Improvement Program, a component of the CIP required by state law, is updated annually and will be adjusted as needed.

Public comment and engagement

There were no in-person public commenters; one virtual attendee was present but did not speak. Committee members reminded residents they may submit feedback by email to the council and that public comment opportunities will continue as the CIP moves through committee and council review.

The committee adjourned at 7:13 p.m.