191293

This annual ordinance establishes rates, charges and fees to generate sufficient revenue for projected expenditures in FY 2023-24. Under these proposed rates, the typical single-family residential bill is expected to increase by $2.60 per month or 3.15%, raising the typical residential monthly bill from $82.83 to $85.42. Increases to each individual customer and other customer classes may vary based on actual usage and circumstances. This rate ordinance will generate $434 million in operating revenue to support the Mayor’s FY 2023-24 Proposed budget for the Bureau of Environmental Services. $382 million of this estimate is from billed retail revenues for sanitary, stormwater and Superfund services. 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. The rate ordinance does not create costs or expenses to the City.

These rates do not include the Regulated Affordable Multifamily Assistance (RAMP) Pilot Program, which would provide a utility bill discount to multifamily properties that are approved for the City’s Nonprofit Low-Income Housing Limited Tax Exemption (NPLTE) program. The costs generated by the program have been included in both the BES and the PWB FY 2023-24 Requested Budgets and 5-year rate forecasts. The RAMP program would have increased both Water and Sewer rates—with a 0.92% increase for Bureau of Environmental Services rates and a 0.2% increase for Portland Water Bureau rates. This equates to an approximate 0.63% overall increase of the utility bill and an increase in $0.85 per month for the typical single-family bill. It is expected to reach 12% or 15,000 multifamily housing units in Portland and is expected to provide a benefit of $325 per unit, annually. The benefit equates to a 4% reduction in rent for a family of three at 30% MFI.

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. All revenue and expenses are included in the FY 2023-24 Water Bureau Proposed Budget.