Utility rate increases in Leavenworth to take effect January 2026

LEAVENWORTH — In an effort to cover increasing operation costs and pay for critical upgrades, the City of Leavenworth is implementing annual utility rate increases for its users, with the next scheduled increase to take effect Jan. 2026.

Monthly base rates are expected to increase by about 15 percent for water, and 2 percent for stormwater, for all users: residential, multifamily and commercial. For instance, a residential customer within city limits with a three-quarter inch meter will pay $12.56 more a month for water, and 13 cents more a month for stormwater. Additionally, a 15 percent increase in monthly sewer rates is expected for multi-family (three or more) units, according to the proposed rate and fee schedule.

Water consumption rates are also expected to increase by about 15 percent for multifamily units and commercial users, who have flat rates. Consumption rates for residential customers, which increase incrementally once they exceed 4,000 gallons, will see about a 9 percent increase.

One-time new connection fees, known as system development charges (SDCs,) will also increase in 2026. Water will start at $9,621.05 per Equivalent Residential Unit (ERU), sewer will start at $3,738.32 per ERU, and storm at $1,376.70 per ERU. The city plans to phase SDC increases over the next few years, with water and sewer anticipated to increase approximately 20 percent in 2027 and 10 percent in 2028. Stormwater is anticipated to increase approximately 10 percent in 2027, according to a city press release.

The city says the rate increases are necessary to meet regulatory compliance and support aging infrastructure needs, which would allow them to proactively upgrade utilities rather than pay “3 to 5 times more” for emergency repairs that cause disruption. It plans to coordinate the utility repairs with major street projects.

City utilities are classified by the state as enterprise funds, which means they are self-supporting and are paid for through the collection of user charges. Legally, the city cannot use other funds, such as Lodging Tax, to pay for utility repairs and upgrades.

The city hopes the improvements will improve reliability, reduce service outages, save taxpayer dollars, fund critical upgrades, increase sustainability, and better prepare systems for extreme weather events.

The City of Leavenworth began implementing annual rate increases in January 2025, after a full review of the 2024 Utility Rate Study. In 2025, a single-family home with a three-quarter inch water meter saw about a $12 increase on average in monthly rates for water, sewer and stormwater; a multi-family structure with 6 units paid about $13 more per unit. For commercial users, a small account saw an increase of nearly $35 a month, a large restaurant (with a one inch meter) averaged $286 a month, and a 100-room hotel was expected to see a $584 average increase, according to the city. 

Taylor Caldwell: 509-433-7276 or taylor@ward.media