Committee forwards sewer-rate changes; staff warns FY27 revisit likely

Salem City’s Committee of the Whole voted to refer proposed sewer-rate adjustments for fiscal year 2026 to the full City Council with a positive recommendation, while staff warned the committee that capital‑planning changes could require revisiting the assumptions for FY27 and beyond.

Staff member told the committee the sewer rates in the proposal increase by 3% consistent with the two‑year‑old rate study; staff added that the combined, cumulative effect of the proposed water and sewer changes is a 5% change. The presentation noted that some capital costs and assumptions have shifted — in part because the city used ARPA dollars for capital projects — and that potential capital needs at the sanitary/sewer district (referenced in the presentation as SCSD/SESD) and at the water board could push future rates higher.

Councilor Marcela moved to refer the sewer-rate ordinance to the full council with a positive recommendation; Councilor Cohen seconded the motion. The committee recorded a 5-0 vote to forward the item. Staff characterized any further changes as contingent on updated capital-planning assumptions and said the city would “revisit” the study for FY27 if needed.

No final rate ordinance was adopted at the committee meeting; the committee’s action was a referral. Staff did not present a definitive projection for FY27 increases, only that future adjustments are “likely up” depending on capital needs.