Clackamas County Board Approves $4M Interfund Loan for Elk Rock Pump Station Upgrade

The Multnomah County Board convened on August 28, 2025, to discuss a significant interfund loan proposal aimed at financing the replacement of the Elk Rock pump station, a critical infrastructure project for the region. The meeting highlighted the need for a $4 million loan from the county's risk fund to support the construction phase of the project, which is estimated to cost a total of $11.2 million, with the county's share being $8.8 million.

Chet Hagen, a program manager from the Department of Community Services, explained that the Elk Rock pump station, which has been in operation for 54 years, is no longer meeting service demands due to insufficient on-site storage capacity. The project aims to prevent raw sewage overflows and is expected to be completed by fiscal year 2027, although it may extend into 2028.

The proposed interfund loan would be repaid over a ten-year term at an interest rate of 4.6%, which is tied to the local government investment pool rate. This arrangement is designed to provide a more favorable financing option compared to potential private market loans, which could exceed 5.5% and incur additional costs.

During the meeting, public comments raised concerns about the interest rate and the use of the risk fund for the loan. A representative expressed skepticism about the necessity of the loan, questioning whether property tax revenues were insufficient to cover the project costs. The representative also emphasized the importance of ensuring that the pump stations are built safely and responsibly, particularly regarding their proximity to waterways.

Commissioners discussed the financial viability of the loan, confirming that the district's current fee assessments would allow for repayment within the proposed timeline. The board is expected to vote on the loan authorization in the coming sessions, with the outcome poised to impact both the district's infrastructure capabilities and the financial burden on local ratepayers.