Sequim Unveils 2026 Utilities Expansion Plan

Sequim City Council Approves Utility Rate Increases for 2026–2030

Sequim City Council members have approved a plan to increase utility rates and general facility charges starting in 2026, with the changes set to continue through 2030. The resolution outlines specific increases for water, sewer, and general facility charges (GFCs), which are one-time fees for new developments connecting to city utilities.

Under the new plan, water rates will rise by 5.5 percent, sewer rates by 4.5 percent, and GFCs by 3 percent. These adjustments aim to cover rising operational costs, infrastructure maintenance, and future projects that require significant investment.

City staff estimate that most households using up to 500 cubic feet of water and sewer services will see an approximate $5 monthly increase in 2026. For new single-family developments, the GFC is expected to cost about $473 more in 2026, according to a city fact sheet.

The resolution was passed by a vote of 6-1 at the July 14 meeting, with Mayor Brandon Janisse voting against it. Janisse expressed concerns about the proposed rate hikes, stating that while he understands the necessity of the increases, he believes the numbers are too high for residents, especially those on fixed incomes or living paycheck to paycheck.

“I understand the need for the increases and where they go,” Janisse said. “But I don’t like these numbers. They’re way too high for me. What about those in the community who live paycheck to paycheck or on a fixed income? Those hurt.”

Public Works Director Paul Bucich acknowledged Janisse’s concerns but emphasized that the rate increases are necessary to avoid larger hikes in the future. He explained that if the city does not implement these increases now, it could face a 6 to 8 percent rate hike in three years or delay critical infrastructure projects.

Planning and Financial Considerations

City staff shared various models of proposed increases during a June 9 work session using its new Waterworth utility software. Bucich noted that the city faces a projected shortfall for water and sewer projects in the coming years. Without proactive planning, the city may be forced to cut back on projects, reduce services, or delay compliance with state and federal regulations.

In 2024, the city council agreed to continue a 3 percent rate increase for utilities, following a 2020 rate study that recommended a 4 percent water and 2 percent sewer rate increase over the next decade.

Bucich highlighted that the city’s utilities have not kept pace with rising costs, including staffing, construction, and operational expenses. He stressed the importance of planning for future expenditures while maintaining reserve standards.

Sequim Finance Director Sue Hagener explained that utility reserves are based on a formula. Water reserves must remain between $818,000 and $1.445 million, currently standing at $911,000. Sewer reserves are set at a minimum of $1.475 million and a maximum of $2.605 million, with current reserves at about $2.232 million.

Benefits of New Software and Infrastructure Investments

Bucich mentioned that the new Waterworth software allows the city to look decades ahead, ensuring that it avoids massive rate increases down the line. It also helps save money by eliminating the need for a utility consultant.

“We’re doing a lot more investigative work on our water and sewer asset infrastructure,” Bucich said. “I fully expect that we’ll find new information that will help us better program the replacement and repair of our work moving forward.”

He also noted that Sequim’s water and sewer rates are currently lower than those of neighboring cities like Port Angeles and Port Townsend. This is partly due to the city’s reliance on groundwater, which reduces operational costs. Additionally, Bucich emphasized that GFCs ensure new developments contribute to the maintenance of existing systems.

Low-Income Utility Discount Program

Sequim offers a low-income utility discount program to assist residents in need. Currently, 53 customers use this program, and applications are accepted throughout the year, despite a January deadline. The discount cuts base charges in half, and residents receiving senior or disability tax discounts likely qualify, as well as those living at 150 percent of the federal poverty level.

Current and Future Projects

Several capital projects are currently underway, including the Doe Run Road lift station replacement, West Sequim Bay Road corridor improvement, and the Silberhorn Road deep well. Other ongoing efforts include manhole replacements, parking lot construction, and reservoir road upgrades.

Future projects include pavement rehabilitation, a direct potable reuse water study, and improvements to the Guy Cole Event Center sewer lines. Additional initiatives involve citywide security upgrades, fuel station development, and street rehabilitation efforts.

Utility Rates Overview

According to the city’s “2025 Basic Utility Rate Information” sheet, the base rate for water at a single-family home is $29.84, with charges varying based on usage. Multifamily homes have a base charge of $28.34. The sewer base charge is $64.88 for single-family homes, $61.64 for multifamily homes, and $68.51 for homes with sewer-only services. Commercial rates depend on pipe size and usage.