Ordinances are being prepared for the December 5th Town of Friday Harbor council meeting to raise utility rates yet again. Rate increases of 13% for water, 3% for sewer, and 25% for stormwater. Town Council will surely shrug their shoulders and pass yet another financial burden on to the residents of Friday Harbor. For a single-family household using an average of 3,500 to 4,000 gallons of water per month, the current bill of around $285.00 will easily climb to over $300.00 per month. Edging ever closer to $4,000 per year—costs that disproportionately impact working families and retirees on fixed incomes.
Our utility systems have come a long way. Just a few decades ago, we discharged untreated water into the bay and hauled sewer solids to a field in the county. Today, we have award-winning systems that meet some of the highest environmental standards. But this progress has come at a steep cost, and it’s the residents who are paying the price. The Department of Ecology continues to push for more improvements, yet state financial support is limited, leaving small towns like ours scrambling to cover the difference.
If I read things correctly the town’s total budget for 2025 is $42.2 million—an enormous figure for a town with a population of just 2,700 people. The General Operating Fund alone has a projected ending balance of $5.2 million, with significant reserves allocated for other funds, such as $3.6 million in the Street Capital Reserve Fund and $1.4 million in the Real Estate Excise Tax Fund. Yet despite these surpluses, the utility funds struggle. The Water Operating Fund, for example, has $3 million in revenues but will finish the year with just $489,665 remaining after expenses. The Sewer Operating Fund faces a similar challenge, projecting an ending balance of $1.37 million. These numbers reveal the crux of the problem: there’s plenty of money in some places, but not where it directly alleviates the burden on residents.
The town has been successful in obtaining some grants and funding but recently fell short and was denied a grant due to heavy competition. These funds are scarce and Limited. The state mandated these costly improvements, so the state must play a larger role in funding them. Our town leaders need to push harder—lobbying the governor, state representatives, and anyone who will listen to recognize this situation as an emergency.
While the town council has shown a willingness to fight for issues and concerns surrounding the ferry and tourism the same energy has not been applied to the growing utility crisis. Ferry access is vital, and tourism is an economic lifeline, but so is ensuring our residents can afford basic utilities. The council needs to recognize that there are ways to address this issue, starting with directing the mayor and administrator to take a proactive approach. This could include lobbying state leaders, forging partnerships with similar small towns to create a unified voice, and thinking creatively about funding solutions.
One solution could involve working with other small towns across Washington that are grappling with similar challenges. By joining forces, these towns could lobby for legislative changes to allow general fund surpluses or lodging tax revenues to be redirected to utility costs. These taxes, often aimed at promoting tourism, could instead be used to offset the infrastructure burdens that tourists directly contribute to. Additionally, the state could provide more tailored financial assistance to small communities like ours that face outsized costs due to mandatory upgrades.
Locally, the council can also revisit how fees are structured. Single-family homeowners currently bear the brunt of base fees, while multifamily properties and commercial entities share those fees among many users, paying far less per household or unit. Adjusting these fees to better reflect actual usage would help alleviate some of the inequities in the current system. While the new tiered system where heavy users pay more is a step in the right direction the inequities lie in the base fees.
This isn’t about assigning blame to the council or any individual leaders. It’s about recognizing that utilities are just as critical to our community’s health and stability as all the other difficult issues we face. Without immediate action, we risk becoming a town where only the wealthiest can afford to live.
Although property values in town rarely falter due to Friday Harbor’s unique appeal, high utility costs will continue to drive longtime residents and working families out. It has been proven in the past that similar properties outside of town are more attractive because of the towns expensive utilities. Could utility rates reach a point where town properties become worth less? It is yet to be seen but possible.
This push toward gentrification is already reshaping our community. It’s time for the council to use every tool available and think creatively to protect the residents who make Friday Harbor what it is.
Jeremy Nash