Marine Stormwater Utility

2027 Rate Adoption

November 17, 2026

Sarah Ogier, Director, Maritime Environment & Sustainability

Jane Dewell, Senior Manager, Marine Stormwater Utility

Item No.10d_supp

Meeting Date: November 17, 2026

Action Requested

• Request Commission authorization of

8.0% rate increase in 2027 to fund

Marine Stormwater Utility (Utility)

• Funding Criteria

– Maintain adequate budget to meet Port’s Long-range

Plan and Utility Charter responsibilities

– Continue investment to maintain and improve a high

functioning stormwater system to protect water

quality

– Support a 6-month fund reserve consistent with Port

policy and best practices

– Maintain predictable rate over a 5-year projection

Utility Pipe Repair Work Adjacent to the MInC Project

• Guiding principles in Century Agenda

o Met system rehabilitation goal of 75% in 2025 versus 2035

o Continue to meet or exceed agency permit requirements for

stormwater leaving Port-owned or operated facilities

o Increased sweeping, inspections, spill response, and tenant

outreach

• Benchmarking of Utility rates and financial best practices

• Completed 1,400+ Marine Maintenance work orders

annually

o Regulatory requirements

o Proactive and data-driven asset management

• Managed Utility Capital Program

o Completed a full pipe replacement at Terminal 46

o Provided design guidance and review all maritime projects

with stormwater components

Ponding at Terminal

106 South Nevada St

2026 Accomplishments

Pipe repair work at

Terminal 46

Financial Goals & Objectives

Top Priorities:

• Sustain 75% rehabilitated system and

meet water quality objectives

• Maintain rates below City stormwater

utility rates

• Rebuild 6-month reserve fund balance by

2031

• Fund limited 5-year capital improvement

plan

Stormwater Improvements at the Maritime Industrial Center

Stormwater Utility Operating Budget

$ in 000’s 2025 Actual

2026 Approved

Budget

2027 Proposed

Budget

Revenue 8,407 9,093 9,813

Expenses

SWU

Maintenance

Other

1,923

4,429

1,869

2,372

5,185

1,941

2,369

5,019

2,011

Total Expense 8,221 9,498 9,399

Capital Program 1,489 1,511 935

Total Expense &

Capital

9,710 11,009 10,334

Annual Revenue –

Total Budget

(1,303) (1,916) (521)

Fund Balance (end of

year)

2,717

65%

1,400

29%

1,256

28%

Notes:

• 2027 budget proposal based on

8.0% rate increase

• 2027 expense budget down 1%

from 2026

• The Utility has not fully funded

6-month reserves or capital for

last 3 years

Alternative

Rate

Increase O&M Reserve Comments

1 - Not

preferred

8.0%, 2027-

2031

Will reach 79%

in 2031

Under this alternative there is insufficient revenue to cover

O&M cost increases and CIP through 2031. Six-month fund

balance not met by end of 2031. Not preferred.

2 - Not

preferred

9.0%, 2027-

2031

Will reach 111%

in 2031

Meets O&M reserve and CIP goals with $4.89M 5-year capital

and $0.602M in additional funds in 2031. Not preferred due to

higher cost impacts on tenants and NWSA.

3 - Not

preferred

10.0%, 2027-

2031

Will reach 144%

in 2031

Meets O&M reserve and CIP goals with $4.89M 5-year capital

and $2.393M in additional funds in 2031. Not preferred due to

higher cost impacts on tenants and NWSA.

4 - Preferred 8.0%, 2027

9.0%, 2028-

2031

Will reach 101%

in 2031

Meets O&M reserve and CIP goals with $4.89M 5-year capital

and $0.045M in additional funds in 2031. Lower cost impact on

tenants and NWSA than other alternatives except alternative 1.

Note: Target O&M reserve for 2031 is $5.467M

2027-2031 Rate Scenarios

Current City & Port Rate Comparison

Stormwater Rate Category City 2026* Port 2026*

City Rate % Higher

than Port

Undeveloped (0 – 15% Impervious) $54.23-70.91 $55.34 -2 to 118.9%

Light (16 – 35% Impervious) $97.01 $85.57 13.4%

Medium (36 – 65% Impervious) $129.37-152.60 $124.28 4.1 to 52.6%

Heavy (66 – 85% Impervious) $192.45 $166.75 15.4%

Very Heavy (86 – 100% Impervious) $232.15 $197.24 17.7%

*Rates are shown as $ per 1,000 sq ft

Note: In 2025, City of Seattle revised rate categories for 0-65% impervious surfaces, and categories no longer directly align with the Port’s rate

categories. City categories for 66-100% impervious surfaces continue to be consistent with the Port’s allowing for direct comparison of rates.

These two categories (Heavy and Very Heavy) also reflect most Port properties.

Port rate is 15-18% lower for industrial properties compared to City

Request Adoption

of 2026 Rate

Questions?