Utility Rates

Rate increases for Water, Wastewater, and Stormwater Utilities

In order to continue delivering safe, reliable water services, we need to make major upgrades to our systems. The City Council approved the three-year rate schedule on July 7, 2025 for City of Bellingham water, sewer, and stormwater utility customers.

Starting January 2026, utility rates will increase by an estimated 13.5% and additional increases are planned for 2027 and 2028 (approximately 11% each year). The overall increase to your water bill is an average of different increases for each utility. The differences reflect the unique needs we’ve identified for each system. For example, wastewater has the highest increase because we’re focusing on big projects to upgrade the Post Point water treatment plant, while drinking water and stormwater have smaller increases.

What It Means for You

Bill amounts vary depending on usage, consumption, housing type, and utility services provided. While we estimate most bills to increase by 13.5%, the actual amount of your monthly bill can vary.

A typical single-family household within city limits will likely see an increase of $18-25 per month, based on average water use. Commercial, multi-family, and customers outside city limits will likely see higher increases. For a more personalized estimate, you can take your most recent utility bill and multiply the total by 13.5%.

For example: $130 X .135 = $17.55 is your monthly estimated increase

Why the Increases Are Needed

We understand that these rate increases are a big change. To keep rates stable in the past, some major projects were postponed while we built a plan to address our infrastructure needs. We are now making a responsible choice to start these essential upgrades and invest in a plan that ensures our systems are dependable and more sustainable.

These rate increases will:

Meet regulatory requirements. The City must stay in compliance with evolving state and federal standards.
Upgrade and replace aging infrastructure. Much of Bellingham’s underground water and wastewater system is more than 100 years old. Replacements are prioritized based on condition and risk to prevent unplanned failures and service interruptions.
Address system needs. The City has identified critical needs in the updated Water System Plan and the forthcoming Sewer System Plan.

Future Utility Rate Increases

Currently, the City Council has approved rate increases for the next three years. Based on our planning efforts we know we will need additional investment in our infrastructure over the next ten years. This means that rates are likely to continue to increase for the foreseeable future to cover the cost of continuing to provide safe and reliable utility services to our community. We do not have approved rate increases after 2028 to share at this time.

Utility Billing

Payment options, turning off and on service, rates

Customer Assistance Program

We understand that these rate increases are a challenge for many households. To support those who need it most, we have expanded our Customer Assistance Program to provide reduced rates for qualifying income-eligible households. For more information, including an application to apply, visit our Reduced Rates webpage.

Customer Assistance

Check eligibility requirements and apply for reduced utility rates

Frequently Asked Questions

Your bill will increase by an average estimate of 13.5% in January, 2026, and additional increases are planned for 2027 and 2028 (approximately 11% each year). For 2026, the average estimated increase for a single-family home is $18-25 per month.

We are committed to delivering safe and reliable utility services to our community every day. The upcoming increase in your water bill supports critical investments we need to make now so we can continue our commitment for years to come.

In years past, we have delayed investment in infrastructure projects to keep rates low for Bellingham residents while we built a plan to address our infrastructure needs. We are now making a responsible choice to start these essential upgrades and invest in a plan that ensures our systems are dependable and more sustainable for the future.

The funds from these rate increases are a direct investment back into our community’s infrastructure. They pay for things like replacing aging water mains, upgrading our sewer treatment facilities, and improving our stormwater systems to handle climate change impacts.

These projects are essential to provide safe and reliable services for everyone. Planned projects over the next 20 years total almost $500 million.

The rate increases will help fund much-needed utility infrastructure projects, including:

Repair and replacement of aging water distribution pipes
Increased water storage and fire flow improvements
Water Treatment Plant improvements and upgrades
Wastewater Treatment Plant emissions upgrades

Long-range planning for these projects comes from our Water System Plan, Nutrient Reduction Evaluation process, Surface and Stormwater Comprehensive Plan, and our forthcoming Sewer Comprehensive Plan. The rate increases will help pay for planned projects over the next 20 years.

Planned projects for the next 3-5 years include:

Water Treatment Plant Improvements: Raw Water Intake Rehabilitation Improvement Redundant Raw Water Intake Feasibility Study Screenhouse Rehabilitation	$10,300,000
Water Distribution System repair, replacement, fire flow, and pressure zone improvements	$13,682,000
Water storage improvements and rehabilitation: King Mountain Water Storage Facility Padden Reservoir Rehabilitation Whatcom Falls II Reservoir Rehabilitation	$61,050,000
Post Point Wastewater Treatment Plan Upgrades: Emission Control System Installation Sludge Storage Tank Replacement	$59,500,000
Sewer Comprehensive Plan	$500,000

Although we continue to prioritize maintaining our systems, much of our infrastructure has performed well past its useful lifespan and requires updating and replacing. Responsible investment now in water and wastewater infrastructure prevents putting our systems at risk of failure. The services your water bill pays for are essential. System failures threaten the health, safety and welfare of our community and deferring infrastructure projects would leave our systems vulnerable, with resulting emergency repairs guaranteeing higher costs to users. Proactive, continued investment in our system allows us to make needed upgrades and safeguard our community’s health.

Currently, we have approved rates for the next three years. Based on our planning efforts, we know we will need an additional investment in our infrastructure over the next ten years. This means that rates are likely to continue to increase for the foreseeable future to cover the costs of continuing to provide safe and reliable utility services to our community. We do not have approved rate increases after 2028 to share at this time.

Your utility bill is an investment in three essential services that keep our community safe and healthy: drinking water, wastewater, and stormwater.

Water

The water utility provides safe, reliable drinking water to our approximately 95,000 customers. Your utility bill protects drinking water by:

Treating and delivering drinking water to your home.
Operating, maintaining and replacing the pipes, pump stations, and meters that make up our drinking water system.
Billing, customer service, and programs that ensure we meet strict state and federal water regulations.

Lake Whatcom Watershed Fee

The Lake Whatcom Watershed fee provides protection of our community’s drinking water source. This helps ensure the water you drink is safe today and for years to come. Your utility bill pays for:

Purchasing land to protect the lake’s water quality.
Designing and building stormwater projects that protect the watershed.
Ongoing costs like taxes and maintenance for watershed land.

Sewer/wastewater

The Sewer Utility collects and cleans wastewater from our approximately 95,000 customers. Your sewer rates are based on the cost of providing this vital service. Your utility bill pays for:

Collecting and cleaning all the wastewater from your home at our treatment plant.
Maintaining, operating and replacing the sewer mains and lift stations in our sewer system.
Upgrades to the wastewater treatment plant and programs that ensure we meet state and federal regulations.
Wastewater treatment plan improvements.

Stormwater

The Surface and Stormwater Utility manages rain and snow runoff to prevent flooding and protect our local waterways from pollution. Your utility bill pays for:

Building projects to clean stormwater and prevent pollution.
Maintaining and replacing the existing stormwater pipes, and treatment and retention facilities.
Upgrades to improve water quality, control flooding, and enhance local fish habitats.

Anyone who pays a water bill for their property in the City of Bellingham will be affected by the rate increase. Some landlords pay the water bill directly and then cover the cost in rent. Since rates will increase, it is expected that landlords will factor that increase into future rent.

Rate increases are approved by the City Council and included in Chapter 15 of the Bellingham Municipal Code.

The new rates for each fiscal year go into effect January 1 and are reflected in the following bill.

New rates for fiscal year 2026—January 1, 2026
New rates for fiscal year 2027—January 1, 2027
New rates for fiscal year 2028—January 1, 2028

Any household with an income at or below 80% of the area median income may now be eligible for a discount on their bill starting in January 2026. Visit our Reduced Rates page to learn more and apply.

Your bill is based on a combination of set costs based on maintenance, operations, and infrastructure, but a portion of your bill is based on actual water use. Every drop counts, so by conserving water, you can save on your water bill. Additionally, we offer a rebate program to replace older, high flow fixtures, and other water saving tools to our water customers.

Some customers may only pay for one service in their bill (e.g. wastewater). The differences reflect the unique needs we’ve identified for each system. For example, wastewater has the highest increase because we’re focusing on big projects to upgrade the Post Point water treatment plant, while drinking water and stormwater have smaller increases.

By service area, increases are estimated at:

Wastewater/sewer: 19%

Your bill funds the collection and treatment of everything that goes down your drains and toilets. This vital process cleans the water by removing pollutants and contaminants, which is essential for protecting public health and keeping our local waterways safe.

Drinking water: 12%

Your bill pays for treating and delivering safe, clean drinking water to your home and for protecting the Lake Whatcom watershed: our drinking water source.

Stormwater: 3.3%

Your bill helps fund the management of rainwater runoff that picks up pollution from yards, roads, and sidewalks. We build and maintain projects to clean the water, prevent flooding, and reduce pollution entering our local water bodies.

For 2026, the planned expenditures for each utility fund are:

Water Fund: $32,933,474
Sewer Fund: $58,559,490
Surface Storm Water Fund: $26,434,444
Watershed: $13,414,257

Utility rates cover operational expenses, maintenance, and capital improvements needed to maintain and improve our water system. The increases are based on long-range planning needs to keep our water system sustainable for the future, including:

Water System Plan – mandated by state law/ Dept of Health, ensures the sustainability of our drinking water system by assessing current infrastructure, projecting future demands, and outlining necessary capital improvements to meet DOH regulations.
Nutrient Reduction Evaluation process – in response to Department of Ecology’s Puget Sound Nutrient General Permit requiring evaluation of nutrient reduction strategies for the Post Point Wastewater Treatment Plant to protect the Salish Sea.
Surface and Stormwater Comprehensive Plan
Forthcoming Sewer Comprehensive Plan (2026-2035)

Bellingham City Council approved the three-year rate schedule on July 7, 2025 for City of Bellingham water, sewer, and stormwater utility customers.