Water Rates increase for Fiscal Year 2023 (starting July 1st 2022)
As of July 1st, the City has adopted new water rates. Many years ago the city adopted a law that sets the minimum rate increase required tied to the Nation Construction Cost Index (NCCI). This law was designed to prevent a Council or Budget committees from failing to meet inflation on the rates to maintain the water and sewer infrastructure in the city. Failing to adequately fund these can be catastrophic for a community. The rates represent increases of 8% based on the NCCI for this last year (typically is is around 2%) and are the minimum required by law:
In City increases:
Water base rate - $2.43
748 gallon ‘unit’ rate - $0.29
Sewer base rate - $3.48
748 gallon ‘unit’ rate - $0.35
Out of City increases:
Water base rate - $4.01
748 gallon ‘unit’ rate - $0.29
(by state law the city cannot easily provide sewer services for property outside the city limits).
The average customer uses 4 units of water (3000 gal), so the average bill would increase by $8.50.
Why are you so expensive?
In reality, we aren’t. Every municipality has different issues, so comparisons across the board truly aren’t apples to apples, but we will update a chart of where we sit amongst our neighbors. Last year, we were right in the middle. This year, we expect the same to be true.
Will our rates increase more?
Yes. The reality is that we have roughly $22 million in expenditures planned over the next ten years, many which are absolutely required (We have already gotten nearly $3.6 million of this covered by the state - and hope to get a lot more). Like most of the region, our plants were built roughly at the same time, and major work needs to be done to upkeep and renovate the plants to keep our water and wastewater treated - the requirements then were much less stringent than now. As well, we have over $3.5 million in pipe replacement required by the state to meet new guidelines in fire flow requirements alone (i.e. they require we get a lot more water to fire hydrants much faster and longer than in the past). This means pipes going from 2 inches to 6 inches to 12 inches in some cases.
But, in order to qualify for the federal funding which often provides those large dollar amounts in grants or long term loans, we are required to meet adequate funding in our rate services. While we have been meeting operational costs over the years, we need to meet these higher requirements to ensure we are attractive to the USDA when we go through this process, so that we can get the best terms and most grant funding possible.
In essence, we can pay a little more now each month, or a LOT more later.
How come other cities aren't doing this?
They are. Balancing the financial aspects of rate increases with the needs of the community is very difficult. Toledo was advised a few years back, for example, to raise rates almost $60. Newport has an $80 million dollar dam project on the horizon. And Seal Rock just spent millions on a water system upgrade. We are all in the same boat - there is more need than there are funds. Rates are going up across the entire county. The City can and will continue to do its best to be frugal, to be diligent in not wasting time as maintenance only costs more later, and in ensuring that money spent is going towards the best outcome per dollar it can. More importantly, we will continue to seek outside funds for as much of the work as possible.