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Philomath council pauses final utility-rate decision pending water treatment bids

City of Philomath City Council · January 13, 2026

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Summary

Councilors reviewed a proposed utility-rate package tied to a planned water treatment plant but opted to wait for contractor bids before finalizing rates; engineers' estimates were cited near $14M and staff said formal bids are expected in the coming months.

Philomath — The City Council on Jan. 12 reviewed proposed changes to water, sewer and stormwater fees but did not set new rates, saying they want contractor bids for the planned water treatment plant before adopting final numbers.

Mayor McMoran, urging caution, said the council’s "preference would be to pause this just until we actually have a number from a contractor to work with," arguing that engineers' estimates can differ materially from final bids. City Manager Chris and finance staff told council the engineer’s estimate for the water plant is in the low‑to‑mid‑teens of millions (staff cited figures close to $14 million and another figure near $15 million) and that the RFP for contractors should be issued soon, with bids expected in the following months.

Staff presented model bills and alternatives — including whether to use a tiered water-rate structure — and provided sample December bill calculations and projected July comparisons to show seasonal effects. Councilors requested more side‑by‑side tables (current rates; increases without tiers; increases with two or three tiers) and asked staff to return with July and December bill examples to illustrate low- and high-season usage.

Councilors also discussed the operational cost drivers behind the proposals, including a proposed sequence of new full‑time positions that would phase in between 2027 and 2031 to address increasing stormwater workload and other system needs. Staff described those added personnel as budgeted across storm, water, wastewater and streets duties rather than being dedicated exclusively to one fund.

No final vote on rates was taken. Council members agreed to wait for the contractor bids for the water treatment plant before adopting a final rate package and asked staff to return with revised models and clarified tables at a future meeting.