Spokane advances reduced sewer and capital rates for micro-housing units

Spokane advances reduced sewer and capital rates for micro-housing unitsThe City Council is considering an ordinance that would discount utility rates for micro-apartments under 350 square feet, a move aimed at aligning infrastructure costs with high-density housing.

Ordinance C36925 defines micro-housing units as permanent dwellings under 350 square feet.

Inside-city micro-housing units will see a proposed monthly domestic sewer charge of $21.46, compared to the standard $39.79.

Water-wastewater capital rates for the units will also be reduced to $21.78 per month.

The Spokane City Council is advancing legislation to create specialized utility rate tiers for micro-housing units, reducing the financial burden on high-density, small-footprint developments. Under Ordinance C36925, which was introduced at the September 2, 2026, legislative meeting, the city would officially define a "micro housing unit" or "micro-apartment" as a permanent dwelling not exceeding 350 square feet. The ordinance establishes a sewer utility rate and a Water-Wastewater Capital rate for these units at 60 percent of the standard multifamily rate. For 2026, the monthly domestic sewer charge for an inside-city micro-housing unit is set at $21.46, compared to the standard domestic charge of $39.79. Outside-city micro units will face a $37.55 monthly charge, compared to the standard $69.63. Additionally, the water-wastewater capital rate—a dedicated charge reserved for infrastructure contributions—will be set at $21.78 per month for inside-city micro-apartments, compared to the $36.30 standard domestic user charge. According to city documents, the rate adjustment aligns with broader efforts to ensure utilities cover their costs of service while remaining consistent with adopted comprehensive plans. City Council previously reviewed the proposed 2027 and 2028 utility rate approach during July committee meetings. The ordinance is currently in the first reading stage and will require final approval before the adoption of the city's next biennial budget.