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Council approves stormwater fee increase; borrowing added to complete Claggett Creek project
Summary
Keizer City Council voted 5'2 to raise the stormwater utility fee 23 cents per equivalent service unit effective Jan. 1, 2026, and staff will use a $200,000 interfund loan to keep the Claggett Creek wetlands enhancement on its summer construction schedule. Councilors Clark and Parsons opposed the fee increase.
Keizer City Council voted 5'2 on June 2 to increase the stormwater utility fee by $0.23 per equivalent service unit (ESU), effective Jan. 1, 2026, a measure the city said will generate roughly $32,900 annually for stormwater capital needs.
During debate, City Attorney Ben Lawyer and staff told the council the decision affects the timing of major drainage work in northwest Keizer. Lawyer said lower-than-requested fee revenue requires borrowing to keep projects on schedule; staff proposed a $200,000 interfund loan (approved separately as a budget amendment) to make the Claggett Creek Watershed Enhancement Project financially whole and ready for construction this summer.
Council members pressed staff on the risks of delaying large stormwater replacements. Lawyer said the largest affected project would be the multi-phase northwest stormwater replacement program (estimated initially at about $1.5 million for phase 1 and closer to $3'5 million total over subsequent phases). Delay could raise overall costs and leave some infrastructure at higher risk of failure, potentially triggering emergency repairs that would be more expensive.
Why it matters: stormwater fees fund capital replacements and maintenance. The council's decision trims available revenue for the coming year, shifts resources and authorizes a short-term loan to keep an otherwise ready project moving.
Key details - Fee change: $0.23/month per ESU, estimated to provide ~$32,900 in new resources starting Jan. 1, 2026. - Vote: 5 in favor; 2 opposed (Mayor Clark and Councilor Parsons). - Staff-identified impact: staff expects to use a $200,000 interfund loan from the Transportation Improvement Fund (authorized in budget action) to complete Claggett Creek project work this summer; the loan will reduce capital available in future years until repaid. - Projects at risk: northwest Keizer stormwater replacement project (phase 1 estimate ~ $1.5M) will be delayed or may require borrowing; delays can increase construction costs and raise risk of emergency failure.
Council comments emphasized a desire to balance affordability with infrastructure need. Staff said the council would revisit stormwater funding and capital sequencing in future budget cycles.
Ending: With the fee adopted, staff will implement the interfund loan and present a repayment schedule; larger stormwater capital sequencing remains on the council's work plan.
