At a Nov. 10, 2026 Auburn City Council study session, FCS Group summarized a comprehensive utility rate study and recommended updated retail rates and system development charges (SDCs) to be effective Jan. 1, 2026, under forthcoming ordinance 7004.

Brooke Taysha of FCS told councilmembers the study projects a 7.8% increase for retail water rates over the 2026–2030 period, which the consultant said equates to about a $3.87 to $4.50 monthly increase on a single‑family water bill in the first year. Sewer retail increases tied to the Auburn portion of service were forecast at about 2% annually (roughly $0.65–$0.67 monthly for a single‑family account), and stormwater increases were projected at about 3.25% (roughly $0.63–$0.67 monthly). Combined, FCS estimated a 5.1–5.2% combined bill impact of about $5.14 in 2026 rising to about $5.84 by 2028.

On SDCs, FCS described the statutory methodology (original cost for existing assets, add future capital, subtract contributed assets and ineligible items, divide by system capacity). Using the city’s data and planned capital costs, FCS presented calculated maximum SDCs of $10,127 for a 3/4" water meter (about $402 higher than today), a sewer SDC of $3,590 (about $18 lower than today), and a stormwater SDC of $1,772 (about $19 lower). FCS said those are maximums by policy and the council may set lower charges, but lowering shifts cost to existing customers. FCS estimated the total additional connection cost for a single‑family new connection at about $365.

Staff also showed a modeling exercise for expanding low‑income discounts. Using local census poverty rates, FCS modeled an illustrative scenario with roughly 1,000 eligible single‑family accounts receiving a 50% discount (comparable to existing senior/disabled discounts). Under revenue‑neutral assumptions, staff said that expansion would add about $0.80 to monthly single‑family water bills (~1.62% of water revenue), about $0.54 to sewer (~1.68% of sewer revenue) and about $0.16 to stormwater (~0.86%), for roughly $1.50 total monthly added to a typical single‑family bill. Director Thomas and staff cautioned that many low‑income residents live in multifamily complexes that typically pay a single account billed to the park or property owner and thus would not directly realize the single‑family discount; staff recommended further work on eligibility, outreach and alternative approaches (including rebates) and proposed continuing the study into 2026.

FCS reported cost‑of‑service analyses found customer classes generally within a ±10% reasonableness band and did not recommend class‑specific cost allocations changes now. FCS also proposed a single‑family stormwater credit for properties with on‑site detention or water‑quality improvements; staff said roughly 685 accounts would qualify and the credit would have small rate impacts on the utility.

On wholesale water rates, FCS explained two wholesale customers: the City of Algona (a continuous draw customer) and Lake Meridian Water District (an interruptible ready‑to‑serve customer). Algona’s charges would increase in line with retail adjustments (FCS estimated about an 8% overall wholesale increase or ~$35,000). Lake Meridian’s ready‑to‑serve fixed charge and any purchase‑water surcharge (if Auburn must procure Tacoma water to serve them) would increase; staff proposed code language to allow annual pass‑through of Tacoma increases to avoid multi‑year catch‑up adjustments.

Staff requested council guidance to bring ordinances (utility rates and SDC adjustments) back for possible adoption at the Nov. 17 regular meeting. No formal vote was taken during the study session; staff said they would return with final ordinance language and any additional analysis on low‑income program design.

Notes: all dollar and percentage figures are drawn from the FCS presentation and staff comments presented at the Nov. 10 study session and reflect the consultant’s modeled, statutory maximum SDC calculations. The council did not adopt any ordinance at this meeting and indicated staff should continue analysis and return with final ordinance language.