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Council members say city utility rebate program needs redesign after only single‑digit participation

Finance, Economic Development & Regional Affairs Committee, City of Federal Way · July 29, 2026
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Summary

Council members, prompted by staff and a public commenter, discussed very low participation in the city’s utility tax rebate (8–11 applicants last year) and asked staff to explore changes—administrative or by ordinance—to increase access and effectiveness for low‑income residents.

Council members pressed finance staff about the city’s utility tax rebate program after public commenter Paul McDaniel criticized the rebate levels and council members noted participation has dwindled to single digits. Finance Director Steve Groom and Council President Susan Honda said the program was simplified to a flat amount and that the change reduced administrative burden but also reduced participation; both said staff will consider program redesign and additional outreach.

“Since we've changed this program to make it easier … we've seen fewer and fewer people apply,” Honda said, noting that the prior, more paperwork‑intensive approach produced larger rebates for some households. Groom added the program is limited to rebating the portion of utility tax the city actually receives and that increasing uptake may require ordinance changes and marketing support from community development and outside partners such as Puget Sound Energy.