City Council approves $20 million budget for wastewater treatment upgrades

The Klamath Falls City Council convened on May 15, 2025, to discuss the city’s budget, focusing on various enterprise funds, including wastewater, water, and geothermal services. The meeting highlighted significant financial allocations and ongoing projects aimed at improving city infrastructure.

The session began with a review of the automated water fund, which operates as a self-sustaining entity rather than relying on general tax revenues. Council members discussed the increasing costs associated with construction and chemical prices in wastewater collection and treatment. A notable budget allocation of $20 million was earmarked for upgrades to the treatment plant, with discussions indicating uncertainty surrounding future costs and regulatory compliance timelines.

The council also addressed stormwater management, noting that expenses are currently funded through the wastewater fund. Previous considerations for establishing a stormwater utility were revisited, emphasizing the financial implications of road projects that often require significant wastewater infrastructure investments.

In the water fund segment, the council reported a transfer of $5 million from the capital project fund to support ongoing operations. Key projects included a $3.5 million booster replacement and a $7.25 million signal reservoir replacement, both crucial for maintaining the city's water system.

Utility billing was another topic of discussion, with council members noting rising credit card fees and the need for new equipment to support billing operations. The council confirmed that a new utility truck would be procured through a state purchasing program, allowing for cost savings through bulk buying.

The geothermal infrastructure was also a focal point, with $1.25 million allocated for the second phase of the Eighth Street geothermal line replacement. The council discussed the longevity of new pipes and the importance of maintaining the integrity of the geothermal system, which currently shows stable temperatures.

The meeting concluded with a brief return to the parking fund, indicating that further discussions would be scheduled for a later date. Overall, the council's deliberations underscored a commitment to enhancing Klamath Falls' infrastructure while navigating the complexities of funding and regulatory requirements. Future meetings will likely continue to address these critical issues as the city moves forward with its budgetary plans.