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Keizer reviews water, stormwater capital needs; staff proposes modest rate steps to fund pipe replacements and repairs
Summary
City staff told the task force the water system needs about $4.5 million in mainline replacements remaining and recommended a small water-rate increase to sustain the program; staff also proposed larger near-term increases for stormwater to meet an identified capital program including the Willow Lake realignment.
Finance and utilities staff used the March 10 meeting to present the city’s water and stormwater utility capital plans, condition assessments, and rate options.
Water system
Tim Wood and Public Works staff said Keizer has about 11,000 metered accounts and highlighted a multi-year water-main replacement program. Staff estimated approximately $4.5 million remains to replace steel mains with ductile iron pipe under the current capital plan. Wood presented a no-increase scenario that would preserve current activity through the near term but leave planned replacements at risk by the mid-to-late 2020s; staff also showed a modest rate option that would allow the city to fund the planned replacements through 2029.
Stormwater system
Staff reported the stormwater utility had not had a rate increase since 2020 and that condition inspections (including CCTV) and site-specific failures — notably the Willow Lake Estates storm-drain realignment — have created a more predictable capital workload. Staff proposed a two-year front-loaded increase (a 25% bump for two years in their example) followed by 10% in subsequent years to meet the five-year capital plan; staff noted the dollar impact to households would be modest because the base fee is low.
Why it matters: deferred capital in utilities increases the risk of failures and higher emergency repair costs. Public Works staff said older steel pipe failures are more likely to present as leaks and joint failures and that delay increases replacement risk.
Quotes and council input
Assistant City Manager/Finance Director Tim Wood and Public Works staff discussed tradeoffs between indexing fee increases and delaying work until larger projects are necessary. Councilor Christopher asked whether master plans and previous rate studies remain valid; Public Works staff said earlier planning work carried forward, and they are preparing updated analyses to support rate decisions.
Next steps
Staff committed to return to the budget committee with modeled alternatives, including phased increases and comparisons to neighboring jurisdictions, and to present public outreach materials ahead of any rate changes.
