Tumwater staff propose combined utility hikes to cover capital debt; say system remains affordable by EPA metric

City staff presented proposed 2027–28 increases for water, sewer and storm utilities, saying the package pairs a routine 3% operational adjustment with a capital surcharge to service new debt. "So that additional seven and a half% is solely for that capital," the presenter said, explaining the capital portion is intended to build capacity to pay roughly $2.5 million in debt service expected in 2028–29.

Staff used three affordability metrics — EPA's 2.5% per-utility guideline, a minimum-wage-hours calculation and United Way ALICE thresholds — and reported the city's median household income data to show the utilities remain within the EPA's affordability threshold in the presenter’s analysis. Councilmember Peter questioned the median-income source, asking, "Did you check with OFM?" Staff committed to provide the underlying data and slides to council. The presentation also showed the average combined bill rising from about $150.83 today to roughly $160.85 in 2027 under the current proposal.