Tacoma City Council Study Session: 2027-2028 Budgets, Rates, and Trick or Streets (October 13, 2026)

The Tacoma City Council met in study session on October 13, 2026, to review the proposed 2027-2028 budgets and rates for Tacoma Public Utilities (TPU) and the Environment and Public Works Department (EPW), and to consider a $5,000 Council Consideration Request for Trick or Streets. The presentations were informational; no formal votes were taken. The City Manager reported no recommended modifications to the evening agenda and noted two public comment opportunities later in the day. No meeting minutes were available in the record.

Public Comments & Testimony

• No public testimony was taken during the study session. City Manager Hyun Kim noted that the evening council meeting would include two public comment opportunities: public comment and community forum.

Discussion Items

Tacoma Public Utilities Budget and Rates Presentation

• TPU Director Jackie Flowers presented the proposed 2027-2028 budget and rates for Tacoma Power, Tacoma Water, and Tacoma Rail, emphasizing alignment with the Tacoma 2035 goals.
• Accomplishments highlighted included the 20-year Bonneville Power Administration contract renewal, joining the day-ahead energy market, Howard Hanson Dam additional water storage, Cascade Water Alliance wholesale agreement, and Tacoma Rail locomotive modernization: eight locomotives, a historic $31 million investment, and more than a 90% emissions reduction in the Tide Flats.
• Flowers cited major cost pressures: transformer costs increased 228% between 2019 and 2026, plus labor, health care, regulatory mandates, aging infrastructure, and hydropower modernization.
• The budget uses a net-zero FTE approach, resulting in a net reduction of 7.5 FTE at TPU; the 'stop, start, continue' initiative produced more than 70 employee submittals and $23 million per year in reductions in the proposed biennial budget.
• Proposed residential rate impacts for an average combined electric and water customer are $10.75 per month in 2027 and $11.52 per month in 2028.
• The Bill Credit Assistance Program would expand eligibility from 60% to 80% of area median income, increasing potentially eligible power customers from 43,000 to 63,000 and water customers from 25,000 to 37,000, with 25% participation assumed.
• Hydro relicensing planning will address three of TPU's four FERC-licensed hydropower projects with licenses expiring in 2037; TPU targets submitting its application by 2032 and estimates about $100 million for this round of relicensing.
• Councilmembers asked about PFAS regulation and water supply planning, cumulative bill affordability, the rate stabilization account, FERC relicensing, Joint Base Lewis-McChord energy resilience, and stranded assets. Director Flowers responded that PFAS compliance is an unfunded federal mandate and that Tacoma's water system remains robust despite regional drought, but fixed infrastructure costs continue regardless of usage.

Environment and Public Works Budget and Rates Presentation

• EPW Director Ramiro Chavez presented the consolidated 2027-2028 budgets for environmental services and public works, covering climate/environment and transportation/mobility investments.
• Proposed residential rate increases: solid waste 5% ($3.24 in 2027, $3.42 in 2028); wastewater 6.5% ($4.25 and $4.75); stormwater 7.5% ($2.90 and $3.42). The combined residential monthly increase for the three EPW utilities is $10.43 in 2027 and $11.59 in 2028.
• Fee proposals include increasing the transfer station commercial county disposal rate from $8.50 to $9.50 per 100 pounds; a new residential self-haul yard waste fee of $10 for the first 400 pounds and $2.50 per additional 100 pounds; a 10% commercial parking tax; raising the commercial right-of-way occupancy application fee from $641 to $1,280 with an annual 2% increase; on-street parking citation tiers of $30, $40, and $50; and increasing street vacation application fees from $500 to $5,000.
• Environmental programs described included pollution response, wastewater and stormwater maintenance, urban tree canopy growth, alternative-fuel fleet transitions, solid waste diversion, and community education and cleanup programs.
• Transportation investments centered on Connect Tacoma, approved by voters in August 2026, and the existing streets initiative, which has repaired more than 5,600 residential blocks and leveraged $144 million in state and federal grants. EPW is developing a Connect Tacoma implementation framework, with a study session anticipated in early December and project list updates in 2027.
• Chavez also noted Vision Zero efforts and automated enforcement on selected corridors, with citations beginning October 14, 2026.
• Councilmembers asked about street sweeping, the yard waste fee, parking enforcement, street vacations, bridge maintenance, and use of utility revenues. Staff clarified that utility funds are restricted to their specific utility purposes and that the new yard waste fee would be accompanied by a public awareness campaign if adopted.

Trick or Streets Funding Request

• Councilmember Hines requested $5,000 in council consideration funds for Trick or Streets, hosted by Safe Streets, to cover street-closure permitting costs for community Halloween and Dia de los Muertos gatherings during the weekend of October 31 through November 2. Last year's inaugural program received $7,500; this year's request is gap funding while Safe Streets pursues Tacoma Venues and Events community funding. Councilmembers Diaz, Walker, and Rumbaugh were listed as co-sponsors. Mayor Ibsen expressed support for the community-building program.

City Manager's Weekly Report

• City Manager Hyun Kim presented four proclamations for the evening agenda: Community Conflict Resolution Day (October 15), Day of Democracy (October 17), Walk and Roll to School Month (October 2026), and Domestic Violence Awareness Month (October 2026). He stated there were no recommended modifications to the evening agenda.

Key Outcomes

• No formal council votes were taken during the study session.
• TPU will take its budget and rates to first reading on October 14, 2026, with a Public Utility Board second reading tentatively planned for October 28, 2026; the budget packet will be included in citywide budget consideration on November 10 and November 17, 2026.
• EPW will present the Connect Tacoma implementation framework to the IPS committee on October 14, 2026, and to the full council in a study session in early December.
• The City Manager provided the weekly report with four proclamations and no recommended agenda modifications.
• An executive session for pending/potential litigation was listed on the agenda but was not reflected in the available transcript.