passed ordinance 2025-135

Adopt fees and charges for water system development and water-related services during the fiscal year beginning July 1, 2025, and ending June 30, 2026

infrastructure utilities
budget finance
ordinance

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

Impact statement

Purpose & background

The ordinance sets water system development charges and other fees and charges for retail and wholesale customers of the Portland Water Bureau for FY 2025-26.

Financial impacts

Fees and charges within this ordinance are expected to generate $22.8 million for water-related services including system development charges, new service installations, customer requested new main connections, engineering permit fees, hydrant installation and usage, and miscellaneous utility charges. All revenue and expenses are included in the FY 2025-26 Water Bureau Requested Budget.

Economic impacts

The bureau participated in the 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 system development charges and other fees lead to the higher development cost and reduced development activity. In response, the bureau proposes an increase in charges and fees of approximately 5% or less in order to balance the bureau’s financial sustainability and the interests of the real estate development industry. It is unclear whether this increase will disincentivize economic activity or alter real estate decisions in the city of Portland. Almost all of the proposed charges and fees are still less than the cost of providing the service, meaning development activities will be subsidized by existing ratepayers.

Community impacts

This ordinance will increase charges to all customers requesting water-related services. The water system development charges and other fees are designed to recover the cost of providing those services.

▸ Full text (the legislation as adopted)

The City of Portland ordains. Section 1. The Council finds: Pursuant to Section 11-105 of the City Charter, the Council has determined revenues are needed to cover Portland Water Bureau costs. The Portland Water Bureau has recommended fees and charges sufficient to meet the Bureau’s revenue requirements for the fiscal year beginning July 1, 2025. This ordinance has been approved by the Office of the City Attorney. NOW, THEREFORE, the Council directs: That the fees and charges in Exhibit A and Exhibit B for water system development and water-related services during the fiscal year beginning July 1, 2025, and ending June 30, 2026, are hereby adopted. That this ordinance is binding City policy, as that term is defined in Code Section 1.07.020. That all water rate ordinances now in effect conflicting in any manner with the provisions of this ordinance are hereby repealed on and after July 1, 2025.

Tally

11 yea 1 nay