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

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.

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 charges and fees ordinance pass, the typical customer will experience no more than a 5% increase in charges and fees.

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.

Not applicable