Philomath reviews utility rate proposal to fund replacement water plant; public hearing set for Dec. 8

Philomath City Council on Nov. 3 reviewed a staff recommendation to change utility rates to cover rising capital and operating costs, most notably a replacement water treatment plant whose estimated cost rose from $12 million to $16 million.

Mayor (presiding) said the session was a follow-up to earlier policy choices and urged an extensive public outreach effort, including a councilor coffee on Nov. 15 and a formal public hearing at the council’s regular meeting on Dec. 8. "I think it's really important for us to try to get the opportunity at least for public input on all of this," the mayor said.

Why it matters: staff and consultants told the council that the plant cost increase and broader inflationary pressure on construction and labor mean the city must adjust rates to generate revenue and service borrowing to build the plant. The packet shows a mix of changes: higher base charges for some customer classes, lower volumetric charges for the lowest consumption tier, inflationary adjustments to sewer, a shift in stormwater billing toward impervious‑surface calculations, and a modest elevation surcharge.

Key numbers and structure: the packet (as discussed in the session) defines water volumetric tiers as tier 1 = 0–6 units, tier 2 = 7–12 units, and tier 3 = 13+ units. Staff highlighted that the proposal would reduce the tier‑1 volumetric rate from $6.55 to $5.70 per unit; if a…