Revise sewer and stormwater rates for FY 2025-26
The City of Portland ordains.
Section 1. The Council finds:
- The Mayor’s Proposed Budget for the Bureau of Environmental Services for FY 2025-26 requires adjustments to sewer and stormwater rates beginning July 1, 2025.
- Sewer and stormwater rates need to be adjusted to pay the operating and maintenance costs, capital costs and debt service of the City's sanitary sewer and stormwater drainage system.
- In accordance with policies adopted by the Council, the proposed adjustments to sewer and stormwater rates are based upon cost-of-service principles, ensuring equity by charging ratepayers according to the amount of sewer and stormwater service they use.
- The proposed sewer and stormwater rates are consolidated into a comprehensive schedule as set forth in Exhibit A of this ordinance.
NOW, THEREFORE, the Council directs:
- Sewer and stormwater rates in accordance with the FY 2025-26 Sewer User Rate Study, as set forth in Exhibit A, are adopted.
- This ordinance is binding City policy.
Exhibits and Attachments
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 as amended by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
This annual ordinance establishes rates to generate sufficient revenue for projected expenditures in FY 2025-2026. Under these proposed rates, the typical single-family residential bill is expected to increase by $4.40 per month. Increases to each individual customer and other customer classes may vary based on actual usage and circumstances. 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.
Financial and Budgetary Impacts
This rate ordinance is expected to generate approximately $439.9 million in operating revenue to support the Mayor’s FY 2025-2026 Proposed budget for the Bureau of Environmental Services. Approximately $209.9 million of this estimate is from billed retail revenues for sanitary and stormwater services.
The rate 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.
Economic and Real Estate Development Impacts
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.
Community Impacts and Community Involvement
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 rate ordinance pass, the typical residential monthly bill for sewer and stormwater will increase by $4.40 or 4.88%.
100% Renewable Goal
Not applicable
Financial and Budget Analysis
Analysis provided by City Budget Office
This ordinance revises sewer and stormwater rates for FY 2025–26 to generate approximately $439.9 million in operating revenue for FY2025-26. Of this total, $209.9 million is projected from billed retail revenues.
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
Prosper Portland staff has reviewed the Economic and Real Estate Development Impact Analysis submitted for this action and finds that it satisfies the requirements set forth in City Council Resolution 37664. The analysis is sufficiently detailed and complete to be considered a final statement for purposes of this action.
Document History
Document number: 2025-134
President's referral: Finance Committee