What this means for you: The City of Everett is moving a proposal to replace its current 6% utility billing charge with a 12% utility tax to the City Council for a formal vote beginning in May 2026. For a typical Everett residential water customer, that’s an estimated increase of about $10.74 per month. The change would affect not just Everett residents, but customers across more than 75% of Snohomish County who rely on Everett’s water, sewer, and stormwater system. If approved, the new rate takes effect as early as July 1, 2026.This is the part of Everett’s budget conversation that doesn’t make the headlines the way a stadium vote or a light rail letter does — but it shows up on your water bill. The City of Everett is preparing to bring a utility tax proposal before the City Council this month, a move that would effectively double the charge applied to residents’ and businesses’ water, sewer, and stormwater bills. The proposal has been in development since at least March 2026, when the council received an informational briefing. Now, with legislation expected to go before the council beginning in May, the public comment window is officially open — and closes once the council acts.
What’s Actually Being Proposed
Since 1983, Everett has collected a 6% Payment in Lieu of Taxes — often called PILOT — on utility bills. A PILOT is essentially a transfer from a city-owned utility to the city’s general fund, a substitute for the property taxes a private utility would pay. It’s built into your water bill already; you’ve been paying it for decades, even if you didn’t know the line item’s name. What Everett is now considering is replacing that 6% PILOT with a 12% utility tax — doubling the rate. The change would generate approximately $7.5 million per year in additional revenue for the city’s general fund. The general fund pays for the city services residents use every day: parks, libraries, streets, and public safety. Everett, like most Washington cities, faces a structural constraint on how much its property tax revenue can grow under Initiative 747 — capped at 1% per year, regardless of inflation. That constraint is the underlying driver of the $14 million projected budget deficit the city is working to close by 2027.What It Costs
For a typical residential customer, the estimated monthly increase is $10.74 per month, or roughly $129 per year. That’s the city’s own estimate from the March 2026 council briefing. The increase applies to water, sewer, and stormwater charges combined, since the utility tax rate is applied across all three services. Business customers and other large users of Everett’s water system would see increases scaled to their consumption. Everett provides water, sewer, and stormwater services not just to city residents but to customers across a wide regional footprint — more than 75% of Snohomish County. That means the financial impact extends well beyond Everett city limits. A family in parts of Mukilteo, Snohomish, or unincorporated Snohomish County who receives their water from Everett Utilities could see the same rate change reflected on their bill if the council approves it.Is This Unusual?
The city’s own research says no — most neighboring cities already use a utility tax at comparable or higher rates. Everett’s current 6% PILOT has been in place since 1983, making it one of the lower rates in the region. The council briefing included a comparison of other jurisdictions’ utility tax rates that supports this framing. That said, calling it a “utility tax” instead of a “PILOT” is more than semantic. PILOTs are internal transfers; utility taxes are charges on the consumer. The shift changes how the revenue is classified — and potentially how it’s understood by the public.The $14 Million Context
The utility tax proposal doesn’t exist in isolation. It’s one of four major revenue levers the city is exploring to close a projected $14 million general fund deficit by 2027:- Regional fire authority (RFA) — Merging Everett Fire with other agencies in a regional structure, moving fire costs off the city’s general fund.
- Sno-Isle Library regionalization — Shifting library costs to a regional taxing district.
- Another levy lid lift — Going back to voters to raise property taxes above the I-747 cap.
- Mariner annexation — Bringing the roughly 21,000-resident Mariner neighborhood into Everett’s tax base, adding revenue without raising rates on existing residents.
What the Council Process Looks Like
The council has been briefed. The legislation is now being drafted for formal consideration. Once introduced, the typical council process includes a first reading, an opportunity for public comment, and a vote — which could happen within weeks of the bill’s formal introduction. The council meets on Wednesdays. Under its standard schedule, most meetings begin at 6:30 p.m. at Everett City Hall; the fourth and fifth Wednesdays of the month begin at 12:30 p.m. Public comment is accepted at all council meetings, either in person or virtually through the city’s online registration system. The city has also signaled it is considering expanding its utility assistance program for low-income residents to help offset the cost increase. Specific eligibility details have not been publicly released as of this writing.Frequently Asked Questions
Does this affect residents outside Everett city limits?Yes. Everett provides water, sewer, and stormwater services to customers across more than 75% of Snohomish County. Any customer whose utility service is billed through Everett Utilities could see the rate change reflected on their bill. Why can’t the city just cut spending instead?
Washington’s I-747 caps property tax growth at 1% per year regardless of inflation or service cost increases. That constraint — not spending choices alone — is the primary driver of the projected deficit. What is a PILOT, and how is it different from a utility tax?
A Payment in Lieu of Taxes (PILOT) is an internal transfer from a city-owned utility to the general fund, functioning as a substitute for property taxes. A utility tax is a charge assessed on the consumer. Both produce revenue for the general fund, but the legal structure and how it appears on bills differ. Is 12% high compared to other cities?
According to the city’s own comparison of nearby jurisdictions, most Washington cities use utility taxes at rates comparable to or higher than 12%. Everett’s current 6% PILOT is on the lower end of regional practice. What does the money pay for?
The general fund covers parks, libraries, streets, and public safety — the core services Everett residents interact with daily. Will there be low-income assistance?
The city has indicated it is considering expanding utility assistance for low-income households as part of the proposal, but specific eligibility details have not been announced. Can the council vote on this without a public vote?
Yes. A utility tax is a council decision and does not require a ballot measure. This distinguishes it from three of the four other revenue options under consideration (levy lid lift, RFA formation, and library regionalization), all of which require voter approval.
What To Do Next
Comment now — before the vote: Once the council votes, the public comment window closes. Submit written comments by email to council@everettwa.gov or attend a city council meeting in person or virtually. The virtual public comment registration form is at everettwa.gov. Attend a council meeting: The Everett City Council meets Wednesdays at 6:30 p.m. (or 12:30 p.m. on the 4th and 5th Wednesdays) at Everett City Hall, 3002 Wetmore Ave. Public comment is taken at the start of each regular meeting. Review the March briefing materials: The council received a full briefing on March 18, 2026. The presentation PDF and video recording are available at everettwa.gov/council. The presentation includes the comparison of other jurisdictions’ rates and the utility service area map. Check your utility provider: If you live outside Everett city limits, verify whether your water service is provided by Everett Utilities — and therefore whether this rate change would affect your bill. Contact your council member: All nine Everett City Council members represent the city at large. Contact information is available at everettwa.gov/council.Related coverage: Everett’s $14 Million Budget Gap Is Back — and Regionalizing Fire and Libraries Is on the Table | Mayor Franklin’s 2026 State of the City: Five Priorities Now Shaping Everett | Everett EMS Levy Goes to August 2026 Ballot
