City Council evaluates $4.5M water system upgrades and potential rate increase

The Long Range Planning Task Force meeting held on March 10, 2025, in Keizer, Oregon, focused on critical discussions regarding the city's water and stormwater systems, particularly concerning capital outlay and potential rate increases.

The meeting began with an overview of the capital outlay for the water fund, which currently stands at approximately $800,000 annually. A significant portion of this budget is allocated to the replacement of steel water lines with ductile iron pipes, with an estimated $4.5 million remaining for this project. Councilor Christopher raised concerns about the age of the current master plan, which is based on projections from 2012, noting that the population growth anticipated at that time has not materialized. This led to discussions about the necessity of updating the master plan, with some members questioning whether the planned reservoir and pump station are still needed.

The conversation highlighted that while the capital improvement plan primarily focuses on water main replacements, the need for a master plan update may not significantly alter the existing budget or priorities. The council acknowledged that inflation has impacted the cost of materials, which in turn affects the rate of replacement for aging infrastructure. It was noted that delaying necessary replacements could increase the risk of pipe failures, which would lead to water loss.

As the meeting progressed, the discussion shifted to potential rate increases for water services. A proposed 1% increase for 2026 was discussed, which would effectively appear as a 5% increase to residents due to previous funding strategies. This increase is seen as essential to fully fund the capital plan through 2030. Councilor Christopher requested further analysis on the implications of delaying the proposed rate increase, emphasizing the need for clarity on how such decisions could affect future infrastructure investments.

The meeting also addressed the stormwater system, which has not seen a rate increase since January 2020. Comparisons with regional rates indicated that Keizer's stormwater fees are significantly lower than those of neighboring areas. The council discussed the potential benefits of implementing incremental fee increases to avoid larger adjustments in the future, suggesting that indexing fees to the Consumer Price Index (CPI) could be a viable strategy.

In conclusion, the meeting underscored the importance of proactive planning and funding for Keizer's water and stormwater systems. The council is set to further evaluate the financial implications of proposed rate increases and the necessity of updating the master plan as they prepare for the upcoming budget discussions.