Arlington approves utility rate increase, $4.46 million roundabout grant and new contracts; council OKs 2026–2028 bargaining agreement
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Summary
The Arlington City Council unanimously approved a set of routine renewals and agreements on Jan. 1, 2026, including a 2.8% CPI-based utility rate increase, a $4,461,608 Transportation Improvement Board grant for the Island Crossing roundabout, and a 2026–2028 collective bargaining agreement; multiple professional services contracts were also renewed.
Arlington’s City Council on Jan. 1 approved a slate of routine contracts, a CPI-based utility-rate increase for 2026 and a major transportation grant, and it authorized a collective bargaining agreement following a closed session.
The council voted to adopt an ordinance applying a 2.8% increase to water, sewer and stormwater utility rates for 2026 after staff said federal CPI data for October 2025 were unavailable and the city used August 2025 Seattle–Tacoma–Bremerton area CPI figures. Jim Kelly, a staff presenter, said the August CPI value was 2.8% and that the change will go into effect following council approval. “Therefore we used the available data, which is the August 2025 CPI, which is 2.8%,” Kelly said.
Councilmembers also authorized the mayor to sign a $4,461,608 grant agreement with the Washington State Transportation Improvement Board to build a roundabout at SR 530 and Smoky Point Boulevard (the Island Crossing project). Jim Kelly presented the grant request and described it as funding for construction of the intersection improvement.
Several contract renewals and service agreements were approved by voice vote. Staff described the renewal with the Stillaguamish Valley Center for senior services as an update to a contract that had ended in 2025 and said the expenses are budgeted in the 2026 budget. The council also renewed an hourly professional services agreement with Bridge Coordination Services LLC for domestic violence coordinator services (a not-to-exceed figure in the packet was $85,001.50) and extended the city’s annual lobbying contract with Strategies 360 for 2026.
After a closed session to review collective bargaining matters under state law (RCW 42.30.140(4)), the council approved a 2026–2028 collective bargaining agreement as presented in the meeting packet. The agreement was described by staff as budgeted in the 2026 budget; staff said economic changes in the contract are reflected within that budget. The union name is recorded in the packet as transcribed and was announced at the meeting as “Ask Me local 28 49.”
Procedurally, the council also selected Michelle Blythe as mayor pro tem and Alicia Novak as the alternate for 2026–2028.
What happens next: The mayor was authorized to sign the approved contracts, the grant agreement and the collective bargaining agreement. Implementation steps and specific effective dates for the ordinance and agreements were not specified during the meeting.
