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City of Everett • 2024 Comprehensive Sewer Plan • October 2025 Executive Summary • ES-16 Table ES-6 | Total CIP CIP Timeframe Total Cost (Inflated Dollars1) Existing CIP 2024-2033 $470,830,000 Proposed CIP (Near Term) 2024-2033 $226,349,000 Proposed CIP (Long Term) 2034-2043 $348,942,000 Total $1,046,121,000 Note: 1. Assumes inflation at 3 percent per year. Financial Program Chapter 12 consists of the financial analysis performed by FCS group to develop a funding plan (“revenue requirement”) for the City’s sewer utility for the 2024 to 2043 planning horizon. The revenue requirement was identified based on operating and maintenance expenditures, fiscal policies, and the capital funding needs identified in Chapter 11. The results of the analysis indicates that a rate adjustment of 14 percent per year 2025 to 2026 and 12 percent per year 2027 to 2028 would be sufficient to support the capital program in the near term. A 12 percent increase per year would need to continue for 2029 and 2030, followed by 8 percent increases in 2031 and 2032, with the additional caveat that there be a 30 percent deferral of planned capital spending in 2029 and 2030, with those projects (or portions of projects) occurring instead in 2039 and 2040. Table ES-7 shows the “across-the-board” rate adjustments for the next five years, applied to the City’s monthly fixed rate for the Metered Residential and Commercial customer classes. The same percentage rate adjustments apply to all classes and rates. It is recommended to conduct another detailed rate study before 2029 to reassess financial statements and strategies. Table ES-7 | Monthly Fixed Rate Adjustments from 2025 to 2029 Metered Residential & Commercial Class 2024 2025 2026 2027 2028 2029 Rate Increase - 15.5% 14.0% 12.0% 12.0% 12.0% Fixed Charge $57.94 $66.92 $76.29 $85.44 $95.70 $107.18 Change ($) - +$8.98 +$9.37 +$9.15 +$10.26 +$11.48