In a pivotal meeting on July 14, 2025, Sequim City Council addressed urgent financial challenges facing the city's water and wastewater utilities. Public Works Director Paul Busich presented a stark warning: without necessary rate increases, both utilities risk a financial collapse within the next few years.

Busich detailed the rising costs of staffing, construction, and operational expenses that have outpaced current utility rates. He emphasized that the city has been proactive in analyzing its financial situation, utilizing new software to project future needs and costs. The findings were alarming—without adjustments, the utilities would not only struggle to meet fiscal policies but could also face service cuts and delays in critical infrastructure projects.

To combat this impending crisis, the council is considering a resolution for a five-year plan that includes a 4.5% increase in sewer rates and a 5.5% increase in water rates, both starting in 2026. Additionally, general facility charges (GFCs) would see a 3% annual increase to keep pace with inflation. For residents, this translates to an increase of approximately $2.92 on their monthly sewer bill and $1.96 on their water bill.

While these increases are necessary for maintaining and improving utility services, some council members expressed concern about the financial burden on residents, particularly those on fixed incomes. Council member Brandon voiced his apprehension, highlighting the cumulative effect of rising utility costs on families already struggling to make ends meet.

In response to these concerns, the council discussed the availability of a low-income discount program, which significantly reduces base charges for qualifying residents. This initiative aims to alleviate some of the financial pressure on vulnerable community members.

The council's decision on the proposed rate increases will be crucial in ensuring the sustainability of Sequim's water and wastewater services while balancing the needs of its residents. As the city navigates these financial waters, the emphasis remains on responsible management and planning for the future.