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Bellevue sewer rate study finds multifamily class over-recovering; staff proposes 3- and 5-year phase-in options

Environmental Services Commission · October 2, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Bellevue Utilities told the Environmental Services Commission Oct. 2 that a draft sewer cost-of-service study shows multifamily accounts are currently overpaying relative to the utility’s cost allocation; staff recommended phased corrections over three to five years and will return in November with rate-design options and outreach plans.

Bellevue — Bellevue Utilities staff presented the draft sewer cost-of-service study to the Environmental Services Commission on Oct. 2, finding that multifamily properties are currently paying more than their measured share of system costs while single-family customers are subsidized.

Assistant Director Matt Thurber introduced the analysis and fiscal manager Matt Hobson walked commissioners through the methodology and results. Hobson said the city used 2027 as the test year and that King County treatment and transmission costs make up roughly half the sewer utility’s 2027 revenue requirement. “This is how we do a checkup,” Hobson said, adding, “A cost of service analysis isn’t a grade. These are checkups.”

Why it matters: Washington law and the city’s financial policies require utility rates to be based on cost of service. The study compares the utility’s estimated cost to serve each customer class (single-family, multifamily, nonresidential) with the revenue…

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