passed ordinance 2025-133

Revise sewer and stormwater charges and fees for FY 2025-26

infrastructure utilities
budget finance
ordinance

Department: Environmental Services
Service area: Public Works
Introduced by: Mayor Keith Wilson
Status: Passed

Impact statement

Purpose & background

This annual ordinance establishes charges and fees to generate sufficient revenue for projected expenditures in FY 2025-2026. Charges and fees increase by 5%, but may vary based on actual usage, circumstance and customer. The proposed charges and fees ordinance will enable the Bureau to continue collecting and treating wastewater from residences and businesses; managing stormwater to prevent erosion, flooding and water quality problems; operating the combined sewer overflow (CSO) system to prevent sewage overflows into the Willamette River and Columbia Slough; and repairing and replacing inadequate public sewer lines that cause sewage overflows and basement backups.

Financial impacts

The charges and fees ordinance does not create costs or expenses to the City. This legislation does not specifically create or eliminate positions in future years. Future position decisions will be made by the Council within the annual budget process.

Economic impacts

The bureau participated in a policy discussion hosted by the Portland Permitting and Development Advisory Committee, where professionals in the real estate development industry were represented. The broad sentiment is that higher SDCs and fees lead to the higher development cost and reduce development activity. In response, the bureau proposes charges and fees increase by a maximum of a 5% to balance financial sustainability and incentivize development. It is unclear whether this increase will incentivize economic activity or alter real estate decisions in the City of Portland. The proposed charges and fees are less than the cost of providing the service, meaning development activities will be subsidized by existing ratepayers.

Community impacts

The Portland Utility Board (PUB) began meeting on September 1, 2015 and has held public meetings at least monthly thereafter with a brief hiatus during the COVID-19 pandemic. Among the PUB’s responsibilities is acting as the bureau’s Budget Advisory Committee by reviewing the bureau’s operating and capital programs and budgets, the FY 2025-2026 Requested Budget and the financial impact to ratepayers of the Requested Budget. Should this charges and fees ordinance pass, the typical customer will experience no more than a 5% increase in charges and fees.

▸ Full text (the legislation as adopted)

The City of Portland ordains. Section 1. The Council finds: The Mayor’s Proposed Budget for the Bureau of Environmental Services for FY 2025-26 requires adjustments to sewer and stormwater charges and fees beginning July 1, 2025. Sewer and stormwater charges and fees need to be adjusted to pay the operating and maintenance costs, capital costs and debt service of the City's sanitary sewer and stormwater drainage system. In accordance with policies adopted by the Council, the proposed adjustments to sewer and stormwater charges and fees are based upon cost-of-service principles, ensuring equity for ratepayers and proper cost allocation for all customers. The proposed sewer and stormwater charges and fees are consolidated into a comprehensive schedule as set forth in Exhibit A of this ordinance. The consolidated schedule does not preclude the establishment and/or continuation of charges and fees by resolution, ordinance, Code provision or administrative rule not otherwise specified in this ordinance. NOW, THEREFORE, the Council directs: The sewer and stormwater charges and fees set forth in Exhibit A are adopted. This ordinance is binding City policy.

Tally

11 yea 1 nay