Utility Rate Structure Update

Starting in January, you’ll see some changes to your utility bill. Over the past two years, the City Council has reviewed the utility rate structure, project costs, and anticipated needs. As a result, they’ve updated the water and wastewater master plans, revised the system development charges (SDCs) for new construction, and adjusted how utility bills are calculated.

The biggest change is making rates more responsive to how much water is used. Right now, the monthly residential flat charge includes 400 cf (about 3,000 gallons) of water, meaning you pay the same flat rate amount whether you use 1,000 or 3,000 gallons. The new rate will lower the flat rate and no longer include the 400 cf allowance, so you’ll only pay for what you use. This benefits households with lower water usage and was designed to be revenue-neutral for the City.

Another change involves adding a consumption-based charge for sewer use instead of a flat fee. Currently, single-family residential sewer users pay a flat fee regardless of usage, while other users like multi-family and commercial are charged based on water consumption. Since summer water use often doesn’t affect the sewer system (like water for pools or irrigation), the new rate structure will use a winter average to calculate sewer charges in the summer for residential users. From April to September, sewer charges will be based on the lesser of your actual usage or the average usage from October to March (winter average).

Lastly, the rates for water, sewer, and the street/storm fee were adjusted for inflation using the Consumer Price Index (CPI). Water and the street/storm fee were adjusted by 3.1%. Since there is a need to replace the City’s main sewer line to the Gresham treatment plant, the sewer rate was increased by 7.1% (3.1% for inflation, and 4% to help cover the cost of the project). This replacement, identified in the master plan, has been under study by an engineering firm monitoring the flow through the current 15-inch line to ensure accurate data for the new line’s sizing and future construction.

More details about all the changes are provided in the tabs below. Please feel free to reach out to the City online, by phone or in person if you have any questions or concerns.


What Can I Do to Lower My Bill?

Use Less Water | Based on the new rate structure, households that use less water, pay less.

Be Water Conscious in the Winter | Based on the new rate structure, the City will calculate residential sewer consumption charges based on the lower of either your actual water usage or your average water usage between October-March.

For additional water conservation tips, visit the Regional Water Providers Consortium website.


Utility rate strucutre updates

What is Winter Averaging?

Based on the new rate structure, the City will calculate residential sewer consumption charge based on the lower of either your actual water usage or your average water usage between October-March. So, if you use less water in the Winter months than in the Summer (peak watering season), your sewer volume charge will be based on your lower Winter average.

Example Bill with and without Winter Averaging

Single-Family Residential

Current Structure

Water Rate

  • Flat Water Base Rate
  • Water Base includes 400 cf of water
  • Consumption Fee for each additional 100 cf
  • Required to pay for full amount even if using less than the base 400 cf of water

Sewer Rate

  • Flat Sewer Base Rate


New Structure

Water Rate

  • Reduce Water Base Rate
  • Remove the 400 cf of water in the base
  • Usage charge based on consumption, providing utility users more control over bill

Sewer Rate

  • Reduce Sewer Base Rate
  • Consumption charge based on actual water usage or during the summer months, your winter average

Example Bills with Current and New Rate Structures
New Single-Family Residential Rates Effective January 1, 2025
Projected Monthly RatesProjected Monthly Rates
Effective January 1, 2024Effective January 1, 2025
WATER RATES
Single Family
Base Fee$29.84$17.53
Consumption Fee for each 100 CF over 400 CF$2.13N/A
Consumption Fee for each 100 CFN/A$3.04
Single Family, Retired
Base Fee$22.40Rate Deleted
Consumption Fee for each 100 CF over 400 CF$2.13Rate Deleted
STREET USER FEES
Single Family Residence (for reference)$12.83$13.23
Residential Fee per ADT$1.3580$1.4001
Flood Safety Residential Fee per ADTN/A$0.1470
SEWER RATES
Single Family
Base Fee$67.83$32.13
Consumption Fee for each 100 CF$5.57
Single Family, Retired
Base Fee$50.91Rate Deleted

Multi-Family Residential

Current Structure

Water Rate

  • Flat Water Base Rate set to 96% of the Single-Family Rate
  • Water Base includes 400 cf of water
  • Consumption Fee for each additional 100 cf

Sewer Rate

  • Flat Sewer Base Rate
  • Consumption Fee for each 100 cf


New Structure

Water Rate

  • Set Water Base Rate to 90% of the Single-Family Rate
  • Remove the 400 cf of water in the base
  • Usage charge based on consumption

Sewer Rate

  • Set Sewer Base Rate to 90% of the Single-Family Rate
  • Consumption charge based on actual water usage or during the summer months, your winter average


Important Note

The City is able to save time and money by sending one utility bill to a multi-family property rather than individually billing each unit. Once the City sends out the utility bill for a multi-family property, the property manager/landlord is then responsible for calculating the cost per unit.


Example Bills with Current and New Rate Structures
New Multi-Family Residential Rates Effective January 1, 2025
Projected Monthly RatesProjected Monthly Rates
Effective January 1, 2024Effective January 1, 2025
WATER RATES
Multi-Family (Includes 2, 3 & 4-plexes)
Base Fee$28.59$15.78
Consumption Fee for each 100 CF over 400 CF$2.13N/A
Consumption Fee for each 100 CFN/A$3.04
Multi-Family, Retired
Base Fee$21.44Rate Deleted
Consumption Fee for each 100 CF over 400 CF$2.13Rate Deleted
STREET USER FEES
Apartment (for reference)$8.83$9.10
Mobile Home Park (for reference)$6.66$6.86
Residential Fee per ADT$1.3580$1.4001
Flood Safety Residential Fee per ADTN/A$0.1470
SEWER RATES
Multi-Family (Includes 2, 3 & 4-plexes)
Base Fee$20.82$28.92
Consumption Fee for each 100 CF$5.28$5.57
Multi-Family, Retired
Base Fee$15.61Rate Deleted
Consumption Fee for each 100 CF$5.28Rate Deleted

Retired Household Discount Program Ending

As noted in the last newsletter, the City was considering replacing the Retired Household Discount Program with the standard Utility Assistance Program. After the open house event and a public hearing, the Council did vote to end the Retired Household Discount. The program will end December 31, 2024. Those currently on the program will receive a separate notice with additional information about the City’s Utility Assistance Program, what it is, and how to apply. One of the main factors in the decision was how the Retired Household Discount was not means tested or based on income level. Also, when the program started over 50 years ago, there was not a general utility assistance program like there is today. Those on the Retired Household Discount program who need financial assistance still have access to help, just in a different way.

Utility Assistance Program

The Retired Household Discount Program will be folded into the City’s current Utility Assistance Program

  • One (1) bill forgiven once per six (6) months (rolling basis)
  • Requires verification of financial need per utility assistance application (based on enrollment in other County/State/Federal need-based programs or income verification)
  • For 2025, current Retired Household Discount program participants will be eligible for a one-time additional Utility Assistance payment without financial need verification

To learn more about or to apply for the Utility Assistance Program, click here.

Impact of SB 1517

Effective June 6, 2024, Senate Bill 1517 provided the UFSWQD with two financial tools to collect revenue to operate and maintain flood safety infrastructure:

1. Property Assessments in the Managed Floodplain

The UFSWQD now has the authority to maintain the existing property assessments used by the the legacy drainage districts. This assessment would only be applied to the properties that receive a direct physical benefit from the flood safety infrastructure. This modification provides the district with a stable operating revenue base that is affordable to implement and property owners in the managed floodplain are already familiar with.


2. District-wide Flood Safety Benefit Fee

The UFSWQD also now has the authority to charge an intergovernmental Flood Safety Benefit Fee to the cities within the district’s boundary and Multnomah County for the unincorporated areas within the district. This fee is designed to reflect the “regional significance” of the economic and community benefits provided by the district as noted in ORS 550.150. The fee would be apportioned to each jurisdiction based on population and each jurisdiction would be responsible for determining how to raise the revenue to pay this fee to the district.

This is the fee that will appear on your utility bill beginning January 1, 2025.

How Will I See the UFSWQD Fee on My Utility Bill?

You can expect to see the Flood Safety Benefit Fee on your utility bill beginning January 1, 2025. For single-family residences, the anticipated monthly fee is under $2. Future outreach on the City’s website, social media, and newsletter will explain how utility users can expect to see this fee. For information on the UFSWQD, visit urbanfloodsafetyor.gov.