Wilsonville staff present three scenarios to raise sewer and stormwater rates to cover $200M+ capital program

The Wilsonville City Council heard a detailed presentation on Nov. 3 from city engineer Zach Weigel and financial consultants from FCS Group on proposed updates to the city’s sewer and stormwater utility fees.

Consultants said the city’s wastewater and stormwater master plans (adopted in 2024) identified roughly $177 million in sewer and $55 million in stormwater capital projects over the next six to four years respectively. Combined with large construction‑cost inflation since 2020 and long periods without rate adjustments (sewer last updated in 2014; stormwater in 2021), the consultants said the utilities must increase revenues to fund operating needs, debt service and planned borrowing.

FCS Group presented three rate design options: an across‑the‑board increase for all customers; a cost‑of‑service phase‑in that adjusts rates to better match each customer class’ cost to serve (recommended by staff); and a cost‑of‑service approach that also removes an existing 2‑CCF residential allowance (which consultants said would raise bills for low‑use customers and therefore is not recommended). Under the recommended scenario, the sewer revenue requirement would be increased by about 27.5% annually over a multi‑year phase‑in to fund planned borrowing, and the stormwater proposal showed roughly 35.5% increases for 2026–28 followed by smaller steps thereafter. Illustration tables showed sample residential and nonresidential bills under each scenario.

Councilors pressed consultants on outreach and equity. Concerned councilors asked about the impact on roughly 122 accounts currently exempt from the stormwater fee; consultants said these were mostly single‑family residential accounts and that staff would notify them directly before any change. Staff also proposed virtual open houses and direct outreach to the city’s top 10 water/sewer users; they plan to return on Dec. 15 with final rates and an implementation schedule.

Consultants and staff emphasized that some projects are growth‑related and funded partially by system development charges (SDCs), while others are rate‑funded infrastructure and maintenance. Councilors asked whether the capital program could be paced to smooth rate impacts; consultants said much of the near‑term work is time‑sensitive and tied to necessary pipe replacements and a large interceptor upgrade (Beckman Creek interceptor, ~ $20 million), which limits the ability to spread costs without deferring necessary work.

No final vote on rates occurred Nov. 3; staff asked for council guidance and committed to public outreach and follow‑up at the Dec. 15 meeting.