passed ordinance 2026-161

Revise sewer and stormwater rates, charges and fees for FY 2026-27

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 rates, charges and fees to generate sufficient revenue for projected expenditures in FY 2026-27.

Financial impacts

This rate ordinance is expected to generate approximately $468.8 million in operating revenue to support the Mayor's FY 2026-27 Proposed budget for the Bureau of Environmental Services. Approximately $460.4million 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.

Economic impacts

The bureau participated in a policy discussion hosted by the Portland Permitting and Development Advisory Committee last year, where professionals in the real estate development industry were represented. The broad sentiment was that higher SDCs and fees lead to higher development costs and reduce development activity. In response, the bureau proposes charges and fees increase by a maximum of a 9% 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 2026-27 Requested Budget and the financial impact to ratepayers of the Proposed Budget. Should this ordinance pass, the typical residential monthly bill for sewer and stormwater will increase by $4.88 or 5.15%.

▸ 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 Fiscal Year 2026-27 requires adjustments to sewer and stormwater rates, charges, and fees beginning July 1, 2026. Sewer and stormwater rates, 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 systems. In accordance with policies adopted by City Council, the proposed adjustments to sewer and stormwater rates, 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 rates, 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. Notwithstanding anything to the contrary in Portland City Code Section 17.36.050 B.3. and Administrative Rule ENB-4.09, Section 6.B.1, tier assignments may be changed after the effective date of this ordinance to ensure accuracy, fairness, and administrative efficiency. NOW, THEREFORE, the Council directs: The Council adopts sewer and stormwater charges and fees as set forth in the attached Exhibit A. This ordinance is binding city policy.

Tally

9 yea 3 nay