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City presents master-fees study: modest utility-rate proposals, pavement concerns and street-sweeping limits
Summary
City staff recommended modest utility rate adjustments (proposed 2% water, ~3.9% sewer projections, 3% stormwater indexing) to sustain capital projects and debt service, and councilors pressed for a pavement-preservation funding analysis amid higher paving costs and resident complaints about street sweeping.
At a study session Tuesday, Lake Oswego staff walked the City Council through the annual master fees and charges review, recommending modest rate adjustments for utilities and presenting the city’s projected fund balances and capital needs.
Director Rooney explained the rationale for indexing many fees to inflation and construction-cost indices and reviewed individual utility funds: stormwater (recommended 3% step increases to match planned capital projects), streets (ENR index, a modeled fund balance around $67 million), sewer (a model showing a large fund spike in 2027–28 to support a wastewater-plant financing that could require full-faith-and-credit bonds to cover an estimated $50–60 million share), and water (staff proposed a 2% increase reflecting operations). Rooney emphasized the difference between debt (fixed obligations) and operations when setting rates.
"We have 13,000 bills that go out every month," Rooney said to underline the broad impact of utility fee changes on residents. He estimated combined adjustments would translate to roughly a 3.1% difference on an average monthly utility bill in the model used (10 CCF water, 8 CCF sewer), or only a few dollars per month for typical residential users.
Council members pressed staff on pavement-condition needs and street operations. Several councilors said paving prices have risen faster than CPI and that the street fund may not be keeping pace with pavement preservation needs. The council discussed revenue options, including franchise fees, and asked staff to prepare analyses for the 2026 work plan and the upcoming biennial budget process. Council also asked about the city's past choice to raise the street maintenance fee (previously increased by 50% to prioritize pedestrian projects) and whether rebalancing could allow more pavement preservation without sacrificing sidewalks.
Operational questions about fall street sweeping generated detailed exchanges. Staff explained the fleet constraint (three sweepers, one often out of service) and that event coverage and equipment maintenance reduce regular sweeping frequency in some neighborhoods; staff asked residents to report specific streets so crews can target those locations.
Rooney said he will return Dec. 2 with a resolution reflecting changes discussed and that staff will continue work next year on street funding and detailed fee schedules.
No fees were adopted at the study session; the presentation was positioned as guidance for draft resolutions and the next steps in the budget and code process.
