Olympia utility bills would rise about 5.5% in 2027 under proposed rate package

Olympia households could see their utility bills climb next year.

At the Oct. 6 City Council meeting, Water Resources Director Gary Franks presented a package of 2027 rate increases that would raise the average bi-monthly utility bill by roughly 5.5%, or about $19.51, The JOLT News reported.

The proposed increases:

• Drinking water: 4.5%
• Waste resources (garbage and recycling): 6.5%
• Storm and surface water: 8.7%
• Wastewater: 9.5%

Why. Franks pointed to higher costs for salaries and benefits, fleet operations and indirect expenses, while customer growth has stayed flat. Energy is another pressure: Puget Sound Energy has proposed a 13.7% rate increase for 2027, with more proposed for 2028 and 2029 — a cumulative 25.4% over three years. That hits drinking water and wastewater hardest because they rely on pumping.

Utility by utility. The waste utility faces a projected gap of just over $2 million on about $20.2 million in spending. Waste Resources Director Ron Jones recommended freezing a full-time position for most of 2027, keeping some smaller vehicles longer, eliminating a transfer to capital and using $500,000 in reserves. The drinking water utility expects a shortfall of about $818,950 and would cut its planned capital transfer from $1.6 million to $500,000. Stormwater faces a roughly $1.6 million gap and would use about $486,000 in reserves; it is also losing grant funding for the street sweeper in June 2027. Wastewater costs include a 3% annual increase from LOTT.

Affordability. Staff said the proposed water and wastewater rates stay below the 2%-of-median-household-income affordability threshold used by federal and state agencies. Council member Robert Vanderpool raised the idea of income-based rate tiers in the future. "I'm deeply concerned about folks who can barely afford rent, or fixed-income seniors who are losing federal programs," he said.

The rates are a proposal; the council has not yet adopted them.