Revise sewer and stormwater rates, charges, and fees in accordance with the FY 2024-25 Budget to clarify system development charges (amend Ordinance 191658)
The City of Portland ordains:
Section 1. The Council finds:
- The Council approved Ordinance No. 191658 to update rates and fees for Fiscal Year 2024-25. The sanitary system development charge (SDC) rates in Exhibit A of that ordinance contained information on subcomponents of the SDC that could confuse customers.
- Updates to Exhibit A of Ordinance No. 191658 are needed to clarify the SDC charge basis and allow for an appropriate generation of SDC revenue.
- 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 or continuation of charges or fees by resolution, ordinance, Code provision, or administrative rule not otherwise specified in this ordinance.
NOW, THEREFORE, the Council directs:
- The Council adopts sewer and stormwater rates, charges, and fees as set forth in the attached Exhibit A.
- This ordinance is binding City policy.
Official Record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
This annual ordinance establishes rates, charges and fees to generate sufficient revenue for projected expenditures in FY 2023-2024. The proposed ordinance will correct the sanitary System Development Charges (SDCs) to reflect how customers pay for and how staff would explain the SDC.
The change removes references to specific charges for the strength of wastewater flow measured through Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) as components of the sanitary SDC charge. While BOD and TSS are used for calculating the SDC amount, they are calculations that determine the overall rate per drainage fixture unit (DFU), not separate components of the SDC. Removing these separate components from the exhibit and showing one charge will allow customers to better understand how to calculate SDCs for a specific development and ensures staff are able to explain the charge clearly.
- This change does not alter the user rates and charges for customers in FY 2024-25.
- This change does not alter the expected SDC amount customers would pay in FY 2024-25.
- This change makes it easier for customers to understand their rate and aligns with how customers will be charged.
- The tight timeline for the March rate ordinance contributed to this error.
Financial and Budgetary Impacts
There are no budgetary impacts of this rate ordinance correction. The SDC rates, while presented more clearly in this correcting ordinance than those in Ordinance 191658, are the same.
Community Impacts and Community Involvement
Removing these separate components from the exhibit and showing one charge will allow customers to better understand how to calculate SDCs for a specific development and ensures staff are able to explain the charge clearly. We do not anticipate specific impacts to vulnerable communities. This is an update to technical language that will make is easier for development applicants to better understand the connection between the rate ordinance and the charge for their specific development. Extensive public outreach was completed during the rate study outreach process in 2023. During this process, BES staff heard input that simpler and clearer language is appreciated by staff and customers.
100% Renewable Goal
N/A
Financial and Budget Analysis
This ordinance further clarifies the SDC charge basis and allows for an appropriation of SDC revenue as approved by Council in Ordinance 191658 earlier in the calendar year. Per the bureau, “The change removes references to specific charges for the strength of wastewater flow measured through Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) as components of the sanitary SDC charge.” This change does not alter user rates, charges, or expectations and clarifies the basis for charges for customers.