Thursday, October 1, 2026
Utility rates are poised to climb in Tumwater over the next two years, as the city looks to raise the money needed to pay for capital projects and other commitments.
Staffers have proposed increases that would add $10.02 in 2027 and $8.96 in 2028 to the average monthly combined utility bill, which currently sits at $150.83.
Finance Director Troy Niemeyer said the increases are driven by capital projects, inflation, program costs and regional commitments, such as the Deschutes Estuary project. He delivered the proposal to the Tumwater City Council at a meeting on Tuesday, Sept. 22.
Niemeyer said a 3 percent base increase is applied every year to cover inflation.
But for the drinking water rate, it would increase by 10.5 percent for both 2027 and 2028, while sewer rates would rise by 7.25 percent in 2027 and 5.6 percent in 2028.
The proposed increase would generate $1,779,031 in drinking water fees and $606,399 in sewer fees during the two-year period.
Much of the additional fees would be used to help make bond payments on future major infrastructure projects.
The projects include a $30 million water storage tank project on 93rd Avenue and $13 million for well development.
Water Resources and Sustainability Department Director Dan Smith said though the debt payment won’t start until around 2028 or 2029, increasing the rate next year ensures “growth pays for growth” rather than placing the entire burden on future ratepayers.
Stormwater rates would increase by 6.65 percent in 2027 and 6.6 percent in 2028, and would generate $655,754 during the two-year period.
The money would go toward debt service payments, an urban forestry program and upcoming payment obligations for the Deschutes Estuary project, a regional project that seeks to remove the Fifth Avenue Dam in Olympia and restore 260 acres of estuarine and salt-marsh habitat in South Puget Sound.
Niemeyer said Thurston County acts as the fiscal agent for contributions from partner jurisdictions for the project.
Smith said fund collection could likely begin once the project gains sufficient momentum and total funding requirements are established.
Compared to neighboring jurisdictions, Tumwater’s projected average monthly utility bill of $160.85 in 2027 is $21.03 lower than Olympia and $7.92 lower than Lacey.
Smith said Tumwater's proposed utility rates also remain within affordability thresholds by the U.S. Environmental Protection Agency (EPA).
EPA considers utility costs “affordable” if they are less than 2.5 percent of median household income. Smith said the combined utility bill across the two-year period is under this threshold.
He mentioned alternative methodologies for measuring affordability, such as the minimum number of working hours needed to pay the bill and the cost relative to one’s disposable income.
For a household of two minimum wage earners making roughly $65,000 combined, it would take about a combined eight hours for the household to afford the utility bills. This would rise to roughly nine hours per month in 2027 and about 9.3 hours per month in 2028, which Smith said would still be considered affordable.
He also drew another example using a household with an annual income of $45,000.
Assuming the household has roughly $1,000 a month in disposable income, the utility bills would represent about 17 percent of that amount. The cenario represents an affordability concern as it exceeds the benchmark of 10 percent.
Smith said the challenge with the alternative metrics is that they are “very subjective” and can be difficult to standardize.
The city runs programs to help people pay for utility bills, including the Life-Line Program and Utility Hardship Program.
The proposed rates would be adopted once the city council approves the 2027-28 fee resolution, which covers all payments relating to city fees, licenses and charges.
6 comments on this item Please log in to comment by clicking here
SAlexander
However, you never take into account the seniors who live here and are trying to keep their homes. You won't know what that struggle is until you retire and have to keep up with all this stuff that may, or may not, be necessary.
Sharon Alexander
2 days ago Report this
JnNwmn
Solar panels can cover a large portion of future electrical demand. PSE should offer solar installations on any home that meets the criteria to be a productive producer of energy. This would depend on the roof sun exposure. At least offer a program for a solar analysis. Modern GIS programs can actually do the analysis by a computer program from an office computer with the correct software program. Solar companies do this analysis right now.
Yesterday at 12:20 AM Report this
OlyBlues
Meanwhile the city of Tumwater continues its spending spree on non-essential costs such as several hundred thousand dollars just approved for a community engagement specialist at the police department, tens of thousands of dollars to promote the city communications manager to director so he can continue to supervise himself, and a six figure salary and benefits for a new "arts coordinator" for the Parks Dept. Over $17 million for a new oversized city hall, the parks lodge, renovations to the old city hall, huge raises for the police department, the spending goes on and on endlessly. While wasteful spending continues at the city, residents struggle to keep up. Instead of the city doing everything it can to keep costs down, Mayor Dahlhoff and her rubber stamping city council continue to make life difficult for residents and spend, spend, spend. Never once a proposal or discussion from her or the council on what they are doing to reduce costs for struggling families. Now they have raised the borrowing rate to the max allowed by the state.
Yesterday at 1:23 AM Report this
CobraCommander
Imagine spending a million dollars on a golf course in this economy
Yesterday at 10:43 AM Report this
CommonSenseSenior
I'm a single senior. My total annual income is $23,209. That's $1934.14 a month that I can spend for everything, rent, food, gas, medicine, doctor, utilities, phone, . If others can afford it, fine. However any increases should EXEMPT those like me on a fixed income not just say there are low income programs for them. I read the Daily Jolt every day. I agree with what OlyBlues said. I love living in Tumwater and I understand the vision our council has of it for the future, but what percentage of Tumwater residents are like me? Does anyone know the demographics of the Tumwater residents annual income per year? You are forcing us out of our homes into the streets. As it is now I cannot spend more than $250/mo on food and all other sundries and use the food bank. I'm probably very typical of your grandparents.
Yesterday at 10:59 AM Report this
Wilkie
Someone needs to check these figures, especially the 2028 Storm ones!
Yesterday at 11:52 AM Report this