Alderwood water district owes Lynnwood $360K in missed tax payments

EVERETT — The Alderwood Water and Wastewater District did not pay required utility taxes to the city of Lynnwood for 15 years, according to Lynnwood city officials.

The district now owes about $360,000 to the city, and Lynnwood customers have been faced with increases to their utility bills.

On March 11, the Lynnwood Times reported that a Lynnwood resident saw a $300 increase in their utility bill due to a “retroactive adjustment” for 2020 to 2025. In the article, Michael Kundu, spokesperson for the water district, attributed the additional cost to a utility tax increase the City Council passed in November. On Monday, the Lynnwood Times reported a clarification from city staff that the increase was due to years of unpaid utility taxes.

Alderwood has not paid utility taxes to Lynnwood since the City Council first approved utility taxes on water and sewer in 2010, Mayor George Hurst said in an email Wednesday.

https://www.heraldnet.com/2026/03/20/alderwood-water-district-owes-lynnwood-360k-in-missed-tax-payments/