Senate gives three coastal cities authority to set water and wastewater fees; debate over local control

The Oregon Senate on Monday passed Senate Bill 1062, a targeted measure that authorizes the city councils of Bandon, Reedsport and North Bend to set water and wastewater rates and fees by majority vote, rather than by a voter approval process that sponsors said has hindered infrastructure upgrades.

Senator Anderson, sponsor of the bill, argued the change is necessary to allow the three small coastal communities to address aging water and wastewater systems and to enable housing development. “By streamlining the process to adjust wastewater and water fees only, these cities can fund critical infrastructure upgrades, making it feasible to support new housing projects,” Anderson said on the floor.

Opponents warned the bill limits voter control. Senator Hayden said the measure “takes the authority from the voters” by allowing elected councils to set fees without a new election, and urged a mechanism that would allow voters to approve such authority via an election before it takes effect. Senator Robinson, who had opposed the bill in committee, said he was concerned about the state changing city charters and noted the tension between local control and the need for infrastructure funding.

Senator Anderson said the practical hurdles to raising fees under current rules were high and that city councils are elected officials accountable to voters. After floor discussion, the Senate passed the bill on third reading.

The bill passed with a constitutional majority. Floor remarks show supporters framed the bill as a narrow, health‑and‑safety and infrastructure measure for three named coastal municipalities; opponents framed it as an erosion of voter control over taxes and fees.