Community Government

City utility customers may face more rate increases

Within the next 10 years, Gig Harbor will face a water shortage. As part of its priorities for the 2027 legislative session, the city is exploring drilling a new well to solve this problem — but that could mean a significantly higher rate for utility customers.

Earlier this year, the city imposed a tiered usage system that led to higher rates, the news of which surprised some residents last year. The new system increases base water costs by 10% over the next four years, and by 2% in the fifth year. The city is working to find ways around significant rate increases.

During a Sept. 17 study session, city lobbyist Briahna Murray told council members that projected population growth caused the impending water supply challenges. If the city drills additional wells, it will likely need to pursue mitigation projects — projects that offset the environmental impact of creating new wells, changing water rights and increasing water usage.

Wastewater treatment plant

The city may also have to bring its wastewater treatment plant up to new standards, but those standards are still undecided.

The Department of Ecology is developing new regulations that could require the city to invest about $100 million to bring its wastewater treatment plant into compliance. Without state or federal help, ratepayers would be on the hook for that investment. The rate increase imposed earlier this year would not cover the cost for upgrades.

Staff only received information about the Department of Ecology regulations the day before the Sept. 17 study session, City Administrator Katrina Knutson said. Officials were still calculating the increases customers might face. 

The rates they have come up with so far have been “unaffordable,” Knutson said, but Murray noted that the Department of Ecology has only released a draft of the final regulations.

“Ecology hasn’t finished their work, so there is a window of opportunity to influence what is included in that permit,” Murray said. “If this all is a priority for you all, we would be advocating for action on trying to change that permit, so that hopefully the price tag is not [so high].”

Possible building moratorium?

If the city cannot raise the money and make these improvements quickly enough, Murray said, it could result in a building moratorium. That, in turn, would mean the city could fall behind in meeting its state-mandated affordable housing goals. 

A building moratorium in Gig Harbor is not new — the city imposed one in 2018 — but the city was also then not up against an affordable housing deadline.

Councilmember Patrick Ammann asked whether the city might be able to get funding tied to growth, since the state’s housing mandate is driving a not-insignificant part of the increase in population in the area. He also highlighted that residents oppose further rate increases.

“If we are trying to make Gig Harbor more affordable for people, increasing the rates is not going to help,” he said. “If one of the state’s goals is to create more affordable housing across Washington state, especially in Puget Sound, I don’t see increasing the rates as something that will assist with that.”

Soaked by water rates

Water rates are top of mind for some residents, especially after the city implemented the tiered water system earlier this year.

Gig Harbor resident Michael Dayton was shocked by his $899.69 water bill for June and July. He said he was expecting a bill for between $400 and $500. Last year, he paid $144.88 for July.

“Because it’s a bimonthly bill, it’s easy in the summer, especially with seasonal irrigation, to hit that top tier and then [the cost for water] just goes crazy,” Dayton said.

Dayton shared a recent email correspondence with Public Works Director Jeff Langhelm. He asked Langhelm about billing and whether the city projected how many residents would reach each tier of billing, especially during the summer.

“You mentioned this morning that I was the first resident to raise this concern with you. I would therefore also be interested in understanding whether customer inquiries regarding unexpectedly high bills are tracked centrally or communicated from Utility Billing to Public Works,” he continued. 

Langhelm wrote back with a detailed reply and advised him to file public records requests. Dayton replied to Langhelm, thanking him and saying that he considered the matter closed. 

Dayton said that neither his email nor his conversation with Langhelm had been noted as formal complaints, but that he did not follow up on the matter.

‘No formal complaint process’

When asked how residents can file formal complaints regarding water rates, the city returned answers from both City Clerk Tiffany Aliment and Scott Larson, the city’s finance director.

“It really depends on what is “in dispute” that determines if an appeal is available and what the process is. As an example, for permits being considered by the hearing examiner, appealed decisions go to the Pierce County Superior Court,” Aliment said. “There is no formal complaint process for a city council action. The public comment and engagement opportunities for these decisions occur during the decision-making process, and the number of times the topic is presented at public meetings is determined by either council direction or the requirements of the type of decision that is being made.”

Larson said that there is no formal process, and that people are “welcome to write letters to the city, or the council and mayor more specifically. In addition, they are welcome to come and make a public comment.”