Adopt rates, charges, and fees for water and water-related services for the fiscal year beginning July 1, 2026, and ending June 30, 2027 (amend ADM-14.07)

The ordinance sets water system rates, charges, and fees for retail and wholesale customers of the Portland Water Bureau for FY 2026-27.

In consideration of the current costs of providing services and the impact on customers, the bureau proposes an increase in charges and fees of 9% or less. Many proposed charges and fees are still less than the cost of providing the service, meaning development activities will be subsidized by existing ratepayers.

This ordinance will increase charges to all customers. The water utility rates and charges are designed to generate revenue to cover the cost of providing water service. The costs are determined by the budget which was reviewed by the Portland Utility Board (PUB), an eleven-member citizen body created to strengthen oversight functions for the City's water, sewer and stormwater services. PUB provided input for the FY 2026-27 budget and rate proposal. Their feedback was considered in creation of the FY 2026-27 budget. Additionally, all relevant documents were provided to the public on the Water Bureau website and information was shared through social media platforms.

Water sales revenues are expected to generate approximately $284.4 million which includes $274.6 million in retail revenues and $9.8 million in wholesale revenues in FY 2026-27. Retail customers are also expected to pay $2.0 million in customer late charges.In addition to the water sales revenue, $9.3 million is expected to be generated by 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.The proposed overall average effective retail rate increase is 8.1 percent in FY 2026-27. With a retail rate increase of 8.1 percent, the retail commodity rate will increase from $8.171 to $8.833, and the base charge will increase from $74.14 to $80.15 per bill (the billed base charge varies depending on the number of days in the billing period). The "typical" residential water customer using 5 hundred cubic feet (ccf) per month will now pay $70.89, up 8.1 percent from the FY 2025-26 "typical" bill of $65.57. The "medium" commercial customer using 100 ccf per month will see a water bill increase from $891.24 to $963.45; an increase of $72.21 or 8.1 percent.Two tiers of fixed low-income discount for qualified single-family residents that are billed quarterly are included in the ordinance. The tier I discount is 50% of the typical usage of 5 ccf for qualified low-income customers. The tier II discount is 80% of the typical usage of 5 ccf for qualified extremely low-income customers. Also included in the rate ordinance is the Regulated Affordable Multifamily Assistance Program (RAMP), which offers discounts for residents in multi-family dwellings.All revenues and expenses are included in the FY 2026-27 Water Bureau Proposed Budget.

This action does not affect the City's total energy use. This action does not affect City's renewable energy use.