Sandy council approves 36% water, 16% wastewater and $2 stormwater increases to fund major projects

The City of Sandy adopted Resolution 2024-25, approving a package of utility rate increases staff said are necessary to fund immediate capital needs and to maintain borrowing capacity.

City staff presented a rate package and supporting analysis showing a 36% increase for water (to support Alder Creek plant reinvestment and a pipeline to the Portland Water Bureau's Bull Run filtration facility), a 16% wastewater increase (to support wastewater capital and consent-decree compliance work) and a $2-per-month stormwater increase to address underfunding in that utility. Staff emphasized that several large water projects (Alder Creek reinvestment, estimated about $21.9 million, and the Bull Run pipeline, estimated about $42.6 million) are under active development and that the wastewater rate model includes about $200 million in infrastructure projects built into an affordability baseline.

Councilors asked detailed questions about debt service, the timing of loan draws, the role of SDCs and whether the increases could be smoothed over two years. Staff said delaying increases would require higher increases later and that lenders require demonstrated rate coverage and cash reserves to approve the loans the projects need. A councilor asked staff to provide underlying rate-model spreadsheets and assumptions so members can review potential cushioning and flexibility.

The council adopted the resolution by voice vote; the motion carried with one recorded nay. Staff said the adopted increases will be reflected on utility bills with the rate insert going into December bills and rate changes reflected on bills received in January.