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Council adopts updated water master plan; consultants say $250M+ generational CIP will require rate action
Summary
The Dalles adopted a 2024 Water System Master Plan update that recommends replacement and expansion of aging treatment and transmission infrastructure, a multi-decade capital program estimated at more than $250 million (inflation included), and a recommended average annual rate increase of about 7.3% for the first 10 years, with $3 million/year in expected SIP contributions from data-center development lowering rate pressure.
The Dalles City Council voted unanimously to adopt the 2024 update to the city’s Water System Master Plan after a multi-part presentation by city staff and consultants from CONSOR and Gallardi Rothstein Group.
Consultants told the council the city’s Wicks water treatment plant and major transmission mains have portions that are about 75 years old, creating a need for generational investment to maintain capacity, seismic resiliency and system reliability. Brian (Ryan) Ginter and Emily Flock of CONSOR outlined recommended near-term steps including optimizing existing supplies, Aquifer Storage and Recovery (ASR) testing, raw water storage evaluation, and a replacement/expansion of the treatment plant and transmission mains as top priorities.
Deb Gallardi presented the financial analysis, saying the capital improvement plan (CIP) grows substantially once inflation and long-term projects are included—“probably will exceed $250,000,000” over multiple decades—and that the city will need additional revenue to fund the work. Consultants proposed a medium‑case financial plan that anticipates an average annual rate increase of about 7.3% for the first 10 years, with nonresidential customers shouldering a somewhat higher share under a cost‑of‑service approach. Gallardi noted potential federal and state funding (including WIFIA) and assumed $3,000,000 per year from the strategic investment program (SIP) tied to development agreements with Google would materially reduce rate pressure.
“Mystery” funding questions were addressed on the record: staff clarified that SIP stands for the strategic investment program and represents contributions from Google tied to the data‑center development agreement and that those monies were assumed in the plan’s financial model to offset rate increases.
Staff said the plan will be forwarded to the Oregon Drinking Water Program for regulatory review. If the council’s adoption stands, staff indicated they are prepared to update rate materials and target an effective date for rate changes around Feb. 1, together with debt planning and potential application for WIFIA and other programs.
Councilors praised the technical work and asked follow‑up questions about the feasibility of tapping Columbia River water rights for industrial uses; staff said Columbia River options face serious technical and regulatory challenges (including federal “bucket‑for‑bucket” replacement requirements) and would likely require separate infrastructure and treatment capacity.
The council adopted the plan unanimously and directed staff to bring a follow‑up resolution regarding SIP funding and budget guidance at a special meeting next week.
