See something we could improve on this page? Give website feedback.
Label:
Ordinance
Revise sewer and stormwater rates, charges and fees for FY 2026-27
Passed
The City of Portland ordains.
Section 1. The Council finds:
- The Mayor's Proposed Budget for the Bureau of Environmental Services for Fiscal Year 2026-27 requires adjustments to sewer and stormwater rates, charges, and fees beginning July 1, 2026.
- Sewer and stormwater rates, charges and fees 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 systems.
- In accordance with policies adopted by City Council, the proposed adjustments to sewer and stormwater rates, charges and fees are based upon cost-of-service principles, ensuring equity for ratepayers and proper cost allocation for all customers.
- 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 and/or continuation of charges and fees by resolution, ordinance, Code provision or administrative rule not otherwise specified in this Ordinance.
- Notwithstanding anything to the contrary in Portland City Code Section 17.36.050 B.3. and Administrative Rule ENB-4.09, Section 6.B.1, tier assignments may be changed after the effective date of this ordinance to ensure accuracy, fairness, and administrative efficiency.
NOW, THEREFORE, the Council directs:
- The Council adopts sewer and stormwater 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 2026-27.
Financial and budgetary impacts
This rate ordinance is expected to generate approximately $468.8 million in operating revenue to support the Mayor's FY 2026-27 Proposed budget for the Bureau of Environmental Services. Approximately $460.4million 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 last year, where professionals in the real estate development industry were represented. The broad sentiment was that higher SDCs and fees lead to higher development costs and reduce development activity. In response, the bureau proposes charges and fees increase by a maximum of a 9% 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 2026-27 Requested Budget and the financial impact to ratepayers of the Proposed Budget. Should this ordinance pass, the typical residential monthly bill for sewer and stormwater will increase by $4.88 or 5.15%.
100% renewable goal
This action does not affect the City's total energy use. This action does not affect City's renewable energy use.
Economic and real estate development analysis
Analysis provided by Prosper Portland
An Economic and Real Estate Development Impact Statement was submitted for this proposed action. Pursuant to City Council Resolution 37664, Prosper Portland staff has reviewed the item statement.
The statement would be strengthened by addressing or expanding on the following:
- Potential adverse economic effects of raising fees. Increasing fees may lead to increases in the cost of housing as those costs are passed along to renters and home buyers.
- How the fees proposed here compare to similar cites. For example: cities in the Portland region, Hillsboro, Beaverton, Vancouver and larger peer cities such as Seattle, Denver, Spokane, and Sacramento.
- Under Community Involvement, this item mentions the Portland Utility Board. It would be helpful to expand on this. Ideally, the Economic and Real Estate Impact statement should detail which committees and/or impacted stakeholders were involved in the policy discussion that led to this proposal and include the nature of the review, public testimony, and feedback collected.
Document history
Document number: 2026-161
President's referral: City Council