Tacoma utility costs will rise next year despite COVID-19. Here’s the impact on your bill
Costs to pay for Tacoma’s five utilities will increase in 2021, despite efforts by some City Council members to halt increases entirely due to COVID-19 impacts.
Tacoma City Council approved rate increases for solid waste, surface water, wastewater, Tacoma Power and Tacoma Water by 1.5 percent next year.
For the average Tacoma resident, that equates to about an additional $3.50 per month, according to Tacoma Public Utility projections.
The rate increases will go into effect on Jan. 1 except for Tacoma Power rate increases, which will go into effect April 1, after the high-usage winter season.
In 2022, rates will increase by 2 percent each, totaling an increase of about an additional $4.95 for the average Tacoma resident.
The rate increases are smaller than what were planned prior to COVID-19. Utility rates were set to increase by around 3 percent in 2021.
The Council also voted to increase discounts to low-income, disabled residential customers from 30 percent to 35 percent.
“The guiding strategy for these rate adjustments is to maintain minimum cost to service increases and yet maintain financial stability with the utilities while being responsive to the financial impacts of the COVID-19 pandemic,” said Mike Slevin, director of the city’s Environmental Services Department, in a meeting with the City Council earlier this month.
City Council member Conor McCarthy said he felt more needed to be done to mitigate financial impacts to residents during COVID-19 and requested what the impacts to the budget would be if rates were not increased.
If rates did not increase in 2021, Tacoma Power and Tacoma Water would see a $15.3 million impact, according to Tacoma Public Utilities documents. For solid waste, wastewater and surface water, that would be $6.7 million in impacts, according to a Nov. 19 memo from Slevin to city manager Elizabeth Pauli in response to council questions.
“Additional capital deferrals and debt would not be financially prudent,” the memo stated. “Implementing a zero percent rate increase in 2021 would require ongoing expense reductions beginning in 2021 to reduce the overall revenue requirement for the utility.”
McCarthy voted against the utility rate increases Tuesday evening.
“I just can’t get there with rate increases across all five utilities this biennium,” McCarthy said. “I just think if there’s any year where we need to hold the line on the expenses that are hitting the ratepayers in the community at large, this is the year.”
Mayor Victoria Woodards, Deputy Mayor Keith Blocker and Council members Catherine Ushka, John Hines, Robert Thoms, Chris Beale, and Kristina Walker voted to support it. Council member Lillian Hunter was excused absent.
