Revise sewer and stormwater rates for FY 2025-26

This annual ordinance establishes rates to generate sufficient revenue for projected expenditures in FY 2025-2026. Under these proposed rates, the typical single-family residential bill is expected to increase by $4.40 per month. Increases to each individual customer and other customer classes may vary based on actual usage and circumstances. The proposed rate 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.

This rate ordinance is expected to generate approximately $439.9 million in operating revenue to support the Mayor’s FY 2025-2026 Proposed budget for the Bureau of Environmental Services. Approximately $209.9 million of this estimate is from billed retail revenues for sanitary and stormwater services. The rate 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.

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.

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 rate ordinance pass, the typical residential monthly bill for sewer and stormwater will increase by $4.40 or 4.88%.