Revise sewer and stormwater system development charges and the Portland Harbor Superfund charge in accordance with the FY 2024-25 budget
The City of Portland ordains:
Section 1. The Council finds:
- The Bureau of Environmental Services (BES) presented Ordinance No. 191731 to update rates and fees for Fiscal Year (FY) 2024-25.
- The stormwater system development charges (SDCs) in Exhibit A to that ordinance contained an error that must be corrected for clarity. Additionally, the Portland Harbor Superfund sanitary rate in the ordinance reflects the FY 2023-24 rate, which was higher than the intended rate for FY 2024-25.
- The updated Exhibit A clarifies the SDC basis in alignment with public communication and the SDC methodology. The Portland Harbor Superfund sanitary rate update aligns with BES’s expected revenue, the typical single-family bill increase, publicly communicated rate changes, and the rate charged to customers in FY 2024-25.
- The proposed sewer and stormwater rates, charges and fees are consolidated into a comprehensive schedule as set forth in Exhibit A to this ordinance. The consolidated schedule does not preclude the establishment or continuation of charges and fees by resolution, ordinance, Code provision or administrative rule not otherwise specified in this ordinance.
NOW, THEREFORE, the Council directs:
A. The sewer and stormwater rates, charges and fees set forth in Exhibit A are adopted.
B. 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 2024-25. The proposed ordinance will correct scrivener’s errors for the stormwater System Development Charge (SDC) and the Portland Harbor Superfund sanitary rate.
The stormwater SDC is listed in ordinance 191731 as a rate ‘per square feet of stormwater billable area’ instead of a rate ‘per 1,000 square feet of stormwater billable area’. Our historical practice is to charge per 1,000 square feet of stormwater billable area. All staff processes currently charge the SDC at the rate ‘per 1,000 square feet of stormwater billable area’. Additionally, the SDC methodology produced the rate ‘per 1,000 square feet of stormwater billable area’.
The Portland Harbor Superfund rate is listed in ordinance 191731 as $0.10 per 100 cubic feet of water consumption, which is the FY 2023-24 rate. The FY 2024-25 rate is $0.04 per 100 cubic feet of water consumption. All public-facing communication (including the typical single-family bill) as well as internal processes use $0.04 per 100 cubic feet, and the ordinance should be updated accordingly.
- These changes align with the publicly communicated impact of rate increases for user rates and SDCs for customers in FY 2024-25.
- These changes align our ordinance with the billing system and administrative processes.
- This change does not alter the expected revenue for BES in FY 2024-25.
Financial and Budgetary Impacts
There are no budgetary impacts of this rate ordinance correction. These two updates correct errors and align the rate ordinance with expected financial outcomes for FY 2024-25.
Community Impacts and Community Involvement
Not applicable.
100% Renewable Goal
Not applicable.
Financial and Budget Analysis
This action authorizes BES to revise sewer and stormwater SDCs and the Portland Harbor Superfund charge in accordance with the FY 2024-25 Adopted Budget. Rates and methodology are including in Exhibit A of this ordinance and are in line with the publicly communicated rates and the FY 2024-25 Adopted Budget. No additional appropriations are required as a result of this action.