The City and Sewer District Consolidation Update

If you have any questions, please contact our City Administrator, Gene Brazel, at gbrazel@lakestevenswa.gov or call 425-622-9414.

Please see the proposed supporting documents provided by the City to the District at the most recent Utility Committee meeting of March 27, 2024.

Latest update as of July 22, 2025
On July 15, 2025, Lake Stevens City Council voted to appeal the ruling related to the city’s legal case initiated by the Lake Stevens Sewer District against the City. While the City respects the court’s decision, the City believes assuming the sewer district as soon as possible will lead to more efficient management by consolidating redundant operations and management, supporting focused growth, coordinating capital improvements and reducing organizational expenses while improving service delivery, enhancing environmental stewardship, and stimulating economic growth.
After much consideration, the decision to appeal was not made lightly. A successful appeal will allow the City to fulfill its obligations to plan for the long-term infrastructure and governance needs of our rapidly growing community. While the legal process continues, the City remains focused on the delivery of high-quality and efficient services for all residents.

Update as of April, 2024
The City of Lake Stevens has made good faith efforts to assume the Lake Stevens Sewer District into its operations. For the past 18 months, the City and Sewer District have worked collaboratively to negotiate the details of merging our two entities, with the main priority of ensuring continuity of services by retaining all Sewer District employees. However, negotiations have encountered unnecessary challenges, primarily due to the Sewer District's resistance to the assumption process. To read the full letter, click here.

Please see below archived updates that were previously posted on the City of Lake Stevens website as information on the assumption became available.

Update as of June, 2022
After several months of meetings between City and District officials, there was agreement to continue a hold on the pending litigation and continue joint good faith efforts to reach agreement on a timetable for City acquisition of the unified City/District sewer system and dissolution of the Sewer District. City and District executive staff would be brought into the negotiations to lend their expertise and assist with the problem solving of the complexities attendant to creating the new City sewer utility, to replace the Sewer District.

Update as of October, 2021
Intending for resolution of the pending lawsuit brought by the District against the City both the City and Sewer District filed Motions for Summary Judgment with the Snohomish County Superior Court. In its motion, the City requested the Court to dismiss the District’s lawsuit. The District on the other hand requested the Court for an order permanently enjoining (preventing) the enforcement of City’s Ordinance 1108 providing for the City’s assumption of the Sewer District and its infrastructure. Summary Judgment was sought as a less expensive means of resolving the lawsuit short of a multi-day or week court room trial.

Update as of June 1, 2021
Well-managed infrastructure, such as utilities, is critical to any community. That’s why the City of Lake Stevens is working to consolidate the operations of the separate Lake Stevens Sewer District into its Public Works Department. The City believes consolidating operations is more efficient and cost-effective for taxpayers and will aid in economic development for our community.
The Sewer District does not want the consolidation to occur, and filed a lawsuit to prevent it from happening. It’s also considering year-long severance packages for its top-level employees, which would cost ratepayers nearly $275,000.
While the court was in the process of deciding, the Herald interviewed both parties and wrote an impartial story about the issue, published June 1, 2021. Please take a moment to read the article and understand the motivation was behind the City’s ordinance to consolidate operations: saving ratepayers and taxpayers money. It is also worth noting that sewer rates are set every year in a public hearing by City Councilmembers elected from the community. Any revenue the City receives from sewer utility ratepayers can only be used for the sewer system.

Update as of May 17, 2021
The City of Lake Stevens continues to work toward consolidating sewer service into its Public Works Department. The purpose is to save money for taxpayers, better manage growth, enhance economic development, and reduce government.
The Sewer District had filed a lawsuit to prevent the City from being able to assume sewer utility operations as planned. Here is a quick look at the legal actions that have happened to date:
The City requested a motion of summary judgement to resolve the issue as soon as possible. The Sewer District requested and received a delay in hearing the motion to allow for pretrial discovery to be completed and to accommodate an attorney on maternity leave. The court granted this request, and the hearing date was moved from April to August.
As part of the pretrial discovery process, the Sewer District filed a motion to prevent having to answer questions posed by the City to narrow the scope of the lawsuit to save time and money. The Sewer District did not want to answer these questions because it identifies the weakness of their arguments. The judge denied the Sewer District’s motion and required the Sewer District to reimburse the City for attorney fees associated with this action.
Part of the Sewer District’s lawsuit says that the City of Lake Stevens cannot assume sewer operations because some customers are part of the City of Marysville. Marysville has issued a letter giving permission for Lake Stevens to assume sewer operations for the handful of residents in that area.

Update as of April 21, 2021
The City of Lake Stevens continued to work toward consolidating sewer service into its Public Works Department. In the last update, we reported the Sewer District had filed a lawsuit to prevent the City from being able to assume sewer utility operations as planned. Snohomish County Superior Court granted a preliminary injunction to maintain the status quo until the case can be heard.
The City requested a motion of summary judgement to resolve this issue as soon as possible. The court date was set for April. The Sewer District requested and received a delay in hearing the motion to allow for pretrial discovery to be completed and to accommodate one of its attorneys taking maternity leave. The date for the court to consider the motion was expected to be reset for late August.

Update as of March 25, 2021
We want to continue to update you on the City’s effort to consolidate sewer operations into its Public Works Department and the Sewer District’s lawsuit to prevent that from happening. The purpose for the consolidation is to save money for taxpayers, better manage growth, enhance economic development, and reduce an unnecessary layer of government.
The Sewer District sued the City to prevent Ordinance 1108 from taking effect. The ordinance allows the City to consolidate Sewer District operations subject to completion of review by the Snohomish County Boundary Review Board. The Snohomish County Superior Court granted a preliminary injunction to maintain the status quo while the merits of claims made by the City and Sewer District are considered.
The City wants this issue resolved as quickly as possible. As such, the City has filed a motion for summary judgement, which provides an expedited opportunity to resolve the lawsuit without the expense of a trial and pretrial discovery costs.

Update as of March 9, 2021
The Snohomish County Superior Court granted the Lake Stevens Sewer District’s motion to prevent Ordinance 1108 from taking effect until court review is completed. By way of review, Ordinance 1108 would allow the City to consolidate Sewer District operations into the City Public Works Department as early as March 16, 2021, subject to completion of review by the Snohomish County Boundary Review Board.
This action was expected while both parties respond to the Sewer District’s lawsuit filed February 2021. The preliminary injunction maintains the status quo until the court makes a final decision on the merits of the claims made by both the District and the City in the lawsuit. The City’s position is it has authority to assume Sewer District operations independent of the Unification Agreement under Washington state statutes. The Sewer District is saying the Unification Agreement prohibits the City from assuming its operations until 2033.

Update as of February 22, 2021
Lake Stevens continues to move forward to integrate the Lake Stevens Sewer District into the City. By way of review, the Lake Stevens City Council unanimously passed the required ordinance in its public meeting on December 8, 2020. The ordinance was discussed prior to passage in executive session due to the potential threat of litigation by the Sewer District.
The Sewer District informed the City the last week of January of its intent to sue. Litigation is costly and would reduce the savings taxpayers could realize from the consolidation. The City offered to extend the effective date of the consolidation from March 16, 2021, to the end of the year to continue negotiations. This offer was declined, and the Sewer District filed a lawsuit as expected.
The City continued to move forward with the consolidation process and filed the required Notice of Intent (Part 1 and Part 2) with the Boundary Review Board (BRB). The BRB reviews boundaries of jurisdictions to ensure the consolidation complies with the Growth Management Act. The consolidation process was completed as of March 16, 2021.

Update as of December 8, 2020
Many governments are looking for ways to be more efficient for taxpayers. In 2005, the City of Lake Stevens and the Lake Stevens Sewer District entered into an agreement creating a unified sewer system. Lake Stevens passed an ordinance to have the Sewer District integrate its operations into the City Public Works Department. Consolidation saves money for taxpayers, better manages growth, and enhances economic development.
The cost-savings for taxpayers are significant. An independent analysis shows a consolidation is projected to save as much as $595,000 in the first three years. These savings are a result of combining accounting, human resources, facilities, and IT departments to eliminate duplication of services. A merger will also provide better prices for goods and professional services due to economies of scale.
The City is responsible for planning and development within the City limits and urban growth area. However, the Sewer District makes decisions on whether or not to extend service, and the two governments can have different priorities. For example, the Sewer District makes more revenue from housing developments while the City wants service extended to industrial and commercial areas to bring jobs to the community. Consolidation will allow the City to determine when and where growth happens to reduce impacts to area residents.
Lake Stevens has elected City Councilmembers. The Sewer District has an elected Board of Sewer Commissioners. The consolidation will eliminate salaries for Sewer Commissioners and save on future election costs. Ratepayers will still have representation through the Lake Stevens City Council, which will set sewer rates annually in a public hearing.