Adopt fees and charges for water system development and water-related services during the fiscal year beginning July 1, 2025, and ending June 30, 2026
The City of Portland ordains.
Section 1. The Council finds:
- Pursuant to Section 11-105 of the City Charter, the Council has determined revenues are needed to cover Portland Water Bureau costs.
- The Portland Water Bureau has recommended fees and charges sufficient to meet the Bureau’s revenue requirements for the fiscal year beginning July 1, 2025.
- This ordinance has been approved by the Office of the City Attorney.
NOW, THEREFORE, the Council directs:
- That the fees and charges in Exhibit A and Exhibit B for water system development and water-related services during the fiscal year beginning July 1, 2025, and ending June 30, 2026, are hereby adopted.
- That this ordinance is binding City policy, as that term is defined in Code Section 1.07.020.
- That all water rate ordinances now in effect conflicting in any manner with the provisions of this ordinance are hereby repealed on and after July 1, 2025.
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
The ordinance sets water system development charges and other fees and charges for retail and wholesale customers of the Portland Water Bureau for FY 2025-26.
Financial and Budgetary Impacts
Fees and charges within this ordinance are expected to generate $22.8 million for water-related services including system development charges, new service installations, customer requested new main connections, engineering permit fees, hydrant installation and usage, and miscellaneous utility charges.
All revenue and expenses are included in the FY 2025-26 Water Bureau Requested Budget.
Economic and Real Estate Development Impacts
- The bureau participated in the 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 system development charges and other fees lead to the higher development cost and reduced development activity.
- In response, the bureau proposes an increase in charges and fees of approximately 5% or less in order to balance the bureau’s financial sustainability and the interests of the real estate development industry. It is unclear whether this increase will disincentivize economic activity or alter real estate decisions in the city of Portland.
- Almost all of the proposed charges and fees are still less than the cost of providing the service, meaning development activities will be subsidized by existing ratepayers.
Community Impacts and Community Involvement
- This ordinance will increase charges to all customers requesting water-related services. The water system development charges and other fees are designed to recover the cost of providing those services.
100% Renewable Goal
- This action does not affect the City’s total energy use. This action does not affect City’s renewable energy use.
Financial and Budget Analysis
Analysis provided by City Budget Office
The bureau anticipates fees and charges outlined in the ordinance exhibits to bring in $22.8 million of revenue for water-related services. The average increase for fees and charges is 5% to support the Water Bureau's operational, maitenance, and capital needs. Fee adjustments are based on cost-of-service and, per the bureau, are not currently at full cost recovery.
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: 2025-135
President's referral: Finance Committee