Q: Is Everett raising water bills in 2026?
A: Everett is proposing to double its utility tax on water and sewer services from 6% to 12%, which would add approximately $10.74 per month to the average customer’s bill. The tax would affect roughly 670,000 people — about three-quarters of all Snohomish County residents — and is scheduled for three council readings beginning in April 2026, with a proposed July 1, 2026 effective date.

Everett’s Utility Tax Proposal Explained: What the 12% Rate Means for 670,000 Snohomish County Customers

Most utility tax proposals affect a city’s residents. Everett’s proposed doubling of its utility tax rate is different: because Everett’s water system serves roughly 670,000 people — approximately three-quarters of Snohomish County’s total population — the financial impact of this decision will land far beyond Everett’s city limits.

Here is a plain-language breakdown of what is being proposed, why, what it will cost, and what happens next.

What the City Is Proposing

Since 1983 — more than four decades — Everett has charged a 6% “payment in lieu of taxes” (PILT) fee on its water and sewer utilities. The proposed change would eliminate that structure and replace it with a 12% utility tax, doubling the rate.

Under state law, municipalities are explicitly permitted to levy utility taxes on their own utilities. Everett’s legal department determined that moving from the informal PILT structure to a formal utility tax aligns the city’s approach with both state law and the practice of most other Washington cities.

The practical difference for customers is $10.74 per month on the average water bill. City Finance Director Mike Bailey described the mechanics to the Everett Herald in March: “Our tax will be embedded in wholesale water costs, and then other cities can do what they will with their utility taxes.” That embedding matters — it means communities that purchase wholesale water from Everett will see the tax added to what they pay, and those communities may then choose to layer their own local utility taxes on top.

Why Everett Needs the Revenue

The proposed tax is a direct response to a structural budget problem that Mayor Cassie Franklin addressed publicly during her March 2026 State of the City address: “We cannot cut our way to a sustainable future.” Everett faces a projected $14 million budget deficit heading into 2027 — a gap driven by the mismatch between rising demand for city services and relatively flat traditional revenue sources.

The utility tax approach would generate approximately $7.5 million per year for Everett’s general fund, closing roughly half the deficit. The remaining ~$6.5 million gap has not yet been addressed by a specific, publicly announced proposal.

Options the city has evaluated to address the full gap include regionalizing library or fire services with neighboring jurisdictions, and pursuing a targeted property tax levy lid lift — which would require voter approval. The utility tax is more politically straightforward because it does not require a public vote and can be implemented quickly if the council approves it.

The Timeline: Three Readings, Then a Vote

The council is expected to take three readings on the ordinance beginning in April 2026. Washington state law requires multiple readings for major ordinances, with the final vote typically occurring after the third reading. If approved, the tax would take effect July 1, 2026.

There is no referendum process available to challenge a utility tax — once the council approves it, the rate change goes into effect on the stated date. Residents who oppose the increase can engage through public comment at council meetings prior to the final vote.

Who Pays and How Much

The $10.74 monthly figure applies to the average Everett direct water customer. The calculation is straightforward: if your current bill reflects a 6% fee embedded in the rate structure, the shift to 12% roughly doubles that embedded cost.

The impact on customers of cities that purchase wholesale water from Everett is less predictable. Those communities receive the embedded tax in what they pay Everett; their own retail rates and utility taxes will determine what their residents ultimately see on bills. Snohomish County utilities from Lynnwood to Monroe, Marysville to Sultan rely on Everett’s wholesale water system, and all will be affected by the embedded rate change.

Over 180,000 sewer customers in the Everett service area will also see the impact of the increased tax on their sewer charges.

Low-Income Protections

City officials have indicated they plan to expand utility payment assistance programs for income-qualified customers before the tax takes effect on July 1. As of publication, no specific details about the expanded assistance program have been released publicly — the timeline and eligibility thresholds are still being developed. Customers who currently receive utility assistance should monitor city announcements for updates on whether their assistance levels will be adjusted to account for the higher rate.

The Broader Context: Snohomish County’s Budget Pressures

Everett is not alone in navigating budget pressure. The state’s property tax levy limits, combined with inflation-driven cost increases in public safety, infrastructure maintenance, and human services, have created structural deficits in municipalities across Washington. The utility tax approach — available to cities under state statute, not subject to voter approval, and implementable quickly — is a tool that other Washington cities have used in similar situations.

The scale of Everett’s water system — 670,000 customers, roughly three-quarters of the county — makes this particular decision unusual in its regional reach. Most city utility tax decisions are a local matter. This one is effectively a county-scale financial decision made by a single city’s seven-member council.

Frequently Asked Questions About the Everett Utility Tax Proposal

Q: When will the Everett utility tax take effect?
A: The proposed effective date is July 1, 2026, if the City Council approves the ordinance after its three required readings beginning in April 2026.

Q: Does this require voter approval?
A: No. Utility taxes in Washington state do not require a public vote. The City Council can approve the rate change through the standard ordinance process.

Q: Why does the Everett utility tax affect people outside Everett?
A: Everett’s water system serves approximately 670,000 people across Snohomish County — about three-quarters of the county’s total population. Communities that purchase wholesale water from Everett will see the increased tax embedded in their wholesale costs, which will flow through to retail customers.

Q: How much will my water bill go up?
A: The average Everett direct water customer would see a monthly increase of approximately $10.74. Customers of other utilities that purchase wholesale water from Everett may see different amounts depending on their local rate structures.

Q: What is the City of Everett’s budget deficit and why does it exist?
A: Everett faces a projected $14 million budget deficit heading into the 2027 budget cycle. The deficit reflects a structural gap between rising service costs (public safety, infrastructure) and relatively flat traditional revenue sources, including property tax revenues constrained by Washington state levy limits.

Q: Will there be help for low-income customers?
A: City officials have stated their intention to expand utility payment assistance programs for income-qualified customers before July 1, 2026. Specific eligibility details and assistance amounts have not been publicly announced as of April 2026.

Q: What else is the city considering to close the budget gap?
A: Options under evaluation include regionalizing library or fire services with neighboring jurisdictions, and a targeted property tax levy lid lift (which would require voter approval). The utility tax, if approved, would close approximately half the $14 million projected deficit.