Strengthening our investment in safe, reliable water

The Bull Run Filtration Project is a transformative investment in our water future. As construction on this vital project advances in 2026, the City has updated the project's total cost estimate to $2.56 billion. This updated figure, based on today's economic conditions, secures the resources needed to reliably deliver this critical project to the highest standards.

Several factors influenced the updated cost estimate. Delays resulting from the land use process and necessary schedule extensions contributed to the increased budget. The estimate also accounts for the significant increase in the costs of construction materials and labor, increases that have far outpaced the cost of living. The updated budget makes it possible to manage both anticipated and unforeseen risks, and program oversight ensuring we can complete this essential project without compromising safety or quality.

The recent decision by the Land Use Board of Appeals (LUBA) has reaffirmed our land use permits, allowing construction to continue. We're grateful for both the County's and LUBA's careful review and consideration of the project. While our land use permits have now been approved or affirmed three times, the challenges from opponents have resulted in increased costs and schedule delays.

We expect the opposition to appeal this decision to the Oregon Court of Appeals. Another appeal of the land use permits will inevitably increase costs and could further delay a project that has been repeatedly approved—one that is essential to providing safe, reliable drinking water to communities throughout the region.

Investing in our community

While long-term investments like filtration have high upfront costs, securing our region's water future is worth it. Filtration protects public health and is our strongest defense against a changing climate, allowing us to serve water even after wildfires and extreme storms. Filtration will help us deliver safe, reliable drinking water for generations to come.

View full size image of Construction at the facility site in January 2026.

Our investment in filtration also supports the local construction workforce and our regional economy. More than 400 highly skilled craft workers, including carpenters, electricians and pipefitters, contribute to building our future.

The City remains focused on a strong finish to this project. Major excavation is complete, concrete work is well underway, and crews have installed more than 7,000 feet (1.2 miles) of new resilient pipeline. In the coming months, the facility will begin to take shape above ground.

We're committed to delivering a high-quality system that will protect public health and provide lasting benefits for generations to come.

Delivering value for our customers

Throughout this project, we're taking proactive steps to deliver value while easing the impact on our customers. We're committed to:

• Maximizing every dollar: We use value engineering and the expertise of our Project Delivery Advisory Team to find smarter, more cost-effective ways to build without sacrificing safety or quality.
• Seeking funding options: We have secured two low-interest Water Infrastructure Finance and Innovation Act (WIFIA) loans, which significantly reduce borrowing costs for ratepayers and help smooth rate impacts over time. We are also pursuing grant funding opportunities to further offset costs.
• Reprioritizing long-term investments: We are updating our 10-year Capital Improvement Plan to focus on our most critical needs first. This allows us to offset cost increases for the filtration project while still maintaining our essential infrastructure.
• Supporting financial assistance: We invest in a robust financial assistance program to make sure our customers can continue to access essential services, whatever their financial situation.

Funding vital services now and for the future

Our rates provide the revenue that we use to pay for our services. This includes ongoing fixed costs of maintaining our system and delivering water as well as critical long-term investments like the Filtration Project.

As our costs rise, our billing revenues must also increase. While rate increases are necessary, we're committed to providing the best value for our customers and easing bill impacts as much as possible. Both Environmental Services and the Water Bureau create long-term financial plans with the intention of smoothing out the customer impacts of rate increases. Our rate increases reflect the real costs of safe, reliable systems and the real challenges facing utilities across the country.

As part of our budget process, we will need to request adjustments to water and sewer rates for the upcoming 2026–27 fiscal year. The budget submission includes options to fund the filtration facility and pipeline projects.

We've worked to manage long-term rate impacts from this project. Our team has secured and continues to pursue state and federal funding options to offset costs.

We are here to help

We know that rate increases can be difficult, especially when budgets are already stretched. Our robust financial assistance programs are here to help. We offer bill discounts, crisis vouchers, and interest-free payment plans. We encourage anyone needing support to reach out to our customer service team at PWBCustomerService@portlandoregon.gov or 503-823-7770.