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Philomath council advances framework for water rate changes as treatment-plant costs rise
Summary
At an Oct. 13 work session, Philomath councilors directed staff to draft new water rates to close a funding gap for a more expensive treatment plant, signaled support for a larger fixed charge and a three-tier volumetric structure, and tabled detailed action on private fire lines for further study.
Philomath City Council met in a work session on Oct. 13 to continue discussion of a consultant-led utility rate study and to give staff direction on how to draft final rate proposals.
Councilors heard staff and consultant summaries explaining that the city’s planned water treatment plant has increased in cost from an original $12,000,000 estimate to about $16,000,000. Councilors were asked to shape how much of the water system’s increased revenue burden should come from a fixed monthly base charge versus usage-based (volumetric) charges, and to advise on related tools such as a multifamily-meter methodology, an elevation surcharge and charges for private fire lines and hydrants.
The short-term fiscal problem driving the discussion is that construction and other costs have risen since the original grant award, leaving a gap the utility must cover. Staff said part of the increased capital cost has been shifted to system development charges (SDCs) for future growth but that a substantial share must be recovered from current customers and rates.
On the key policy choices, councilors…
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