Water Rate Study

Water Rates Structure & Future Rate Increases
The City Council will hold a public hearing at City Hall on December 2, at 7 p.m. The purpose of the hearing will be to consider adoption of resolutions for a revised water rates structure and future rate increases. The current effort stems from a new look at the city’s water rates structure for various classes of water users (residential, commercial, and industrial) along with capital needs for maintenance of the water utility system.

Structure Revisions
The current water rates are based on an outdated cost-of-service analysis that was completed more than 15 years ago, prior to the city’s Willamette River Water Treatment Plant coming online. The council is considering revising the water rates structure to take effect in January of 2014 that would be more equitable among user categories based on the recent cost-of-service analysis.

Depending on the class of customer and other factors such as meter size and usage for domestic use or irrigation, rates would be adjusted up or down. However, the overall effect of the water rate restructuring would be revenue neutral, meaning that the city will neither increase nor decrease overall water rates revenue.

Resolution
Simultaneously, the council will consider a resolution for a series of three annual rate increases of 2.25% beginning in January of 2015 to cover operating costs and systems maintenance. The cost to fund the expansion of the capacity of the water system is not borne by rate-payers, and instead is financed by new development through the payment of systems development charges (SDC).

For questions or comments on how this might affect your bill, please email the utility billing department.