Auburn consultant recommends multi-year water, sewer and stormwater rate increases; council to consider ordinance Nov. 17

A city-funded utility rate study presented at the Auburn City Council's Oct. 27 study session recommends stepped increases to water, sewer and stormwater rates to fund capital projects and maintain financial reserves.

Brooke Taysha, a consultant with FCS Group, told the council the plan would require roughly 7.8% annual increases for the water utility from 2026 through 2030, falling to 3.75% in 2031. "We're looking at about a 7.8% rate increase from 2026 through 2030 before dropping to 3.75 in 2031," Taysha said during the presentation. For sewer, FCS recommended 2% annual increases from 2026 through 2031; for stormwater the consultant proposed 3.25% annually over the same period.

Why it matters: FCS said the increases are driven by capital investment needs (the water CIP is projected at about $88.9 million for 2025'131), rising operating costs and planned new debt. Taysha summarized the water-side picture: existing rate revenue of about $20.1 million, O&M growing from roughly $14.7 million to $18.2 million, and planned new debt issuances totaling about $47.5 million (expected in 2027, 2029 and 2031).

Estimated customer impact: FCS presented representative bill impacts for a typical single-family home of about $3.87'$4.50 per month for the water portion in 2026 under the proposal. The combined local bill impact shown in FCS's sample was about a 5.1% increase in 2026 (rising modestly by 2028). Taysha cautioned that some changes in total household bills will be driven by King County's treatment charges, which are outside Auburn's control and have their own planned increases.

Council members pressed staff on affordability. Council member Tracy Taylor asked how the city would "soften the blow" for low-income and fixed-income households. The consultant and staff said a targeted low-income assistance program is the usual approach rather than holding rates down for all customers. Council member Sturgis noted that Auburn already maintains a low-income, disabled and senior discount program and that expanding targeted assistance will shift some costs to other ratepayers.

Cost-of-service and rate design: FCS reported that, under its allocations, customer classes (single-family, multifamily, commercial and irrigation) fall within a +/-10% reasonableness range for cost causation and recommended applying the proposed increases equally across classes. The firm said it is not proposing major rate-structure changes now; instead, the focus is on revenue sufficiency, equity and implementability.

Timeline and next steps: Staff said council will receive a second presentation Nov. 10 and an ordinance recommending new utility rates on Nov. 17, with the goal of adopting rates effective Jan. 1, 2026.

What council members asked for next: Council members requested more detail on targeted assistance options, clearer examples of household impacts at different usage levels, and continued outreach to customers about existing aid programs.

The council did not vote on rates Oct. 27; the ordinance and any public hearing will follow the staff and consultant briefings.