The Bellingham City Council's Public Works and Natural Resources Committee received a comprehensive presentation on massive infrastructure investments that will fundamentally reshape utility rates for the next two decades. The city faces a combined $2 billion in water and wastewater capital improvements over the next 20 years, driving utility rate increases that could reach 18% annually in some years. The Water System Plan totals $532 million over 20 years, while wastewater improvements—including potential nutrient reduction requirements—could cost up to $1.5 billion. Staff presented two scenarios for each utility system, recommending a phased approach that delays some projects to moderate rate impacts. Even with the recommended "Scenario 2" approach, a typical single-family customer's combined utility bill would rise from about $135 per month today to approximately $450 per month by 2045—more than triple current rates. If nutrient reduction projects are included, bills could reach $635 per month. The committee agreed to refer the matter to the Finance Committee for detailed rate implementation discussions. The presentation highlighted the tension between maintaining essential infrastructure and affordability, with significant questions raised about low-income assistance programs and the timing of regulatory requirements from the state Department of Ecology. #
Public Works and Natural Resources Committee
Executive Summary
Key Decisions & Actions
& Actions No formal votes were taken, as this was an informational presentation. The committee provided direction to staff on next steps: **AB 24493 - Water System Plan and Financial Presentation**: Committee received the presentation and agreed to refer rate implementation discussions to the Finance Committee. Staff recommendations were accepted for pursuing Scenario 2 (phased approach) for both water and wastewater capital improvement programs. **Staff Recommendation vs. Committee Action**: Staff recommended pursuing the phased approach (Scenario 2) for both utilities and moving rate discussions to Finance Committee. The committee concurred with both recommendations. **Key Specifics**: The Water System Plan agency review draft has been submitted to the Department of Health for 90-day review (potentially extending to 180 days). Rate implementation discussions will move to Finance Committee meetings on May 5 and June 9, 2025. **Practical Meaning**: This shifts the most challenging political discussions—actual rate adoption—to a different committee while allowing technical planning to proceed. #
Sign up free to read the full briefing
Unlock Full Access — It’s FreeNotable Quotes
Sign up free to read the full briefing
Unlock Full Access — It’s FreeWhat's Next
**May 5, 2025**: Finance Committee meeting to discuss proposed rate increases and customer assistance program expansions, including specific eligibility changes and impact analysis. **June 6, 2025**: Soft deadline for internal and external agency comments on Water System Plan. **June 9, 2025**: Second Finance Committee meeting to consider implementation of proposed rates. **June 2025**: Department of Ecology expected to issue Nutrient Reduction Plan and modeling results. **July 22, 2025**: Water Resources Advisory Board presentation on Water System Plan (if Department of Health stays on 90-day review schedule). **August 11, 2025**: Public hearing and City Council consideration of Water System Plan adoption (potentially delayed to October/November if Department of Health extends review period). **October 2025**: Rates implementation if approved by City Council. **Ongoing**: Communications plan development and implementation by Riley and communications team. #
Sign up free to read the full briefing
Unlock Full Access — It’s Free