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Philomath consultants say FY27 utilities need about $2.4 million; propose tiered water rates, elevation surcharge and phased changes
Summary
Raftelis told the Philomath City Council on July 28 that the FY27 revenue requirement for water, sewer and storm drain is about $2.4 million (roughly 24% above FY26) and presented policy options including raising the fixed revenue share to 30%, a two‑tier residential volumetric rate with a 12‑unit cutoff, an elevation surcharge of $0.74/unit for higher zones, and scaled private fire charges.
Consultants from Raftelis Financial Consultants presented a utility rate study to the Philomath City Council during a July 28 work session, estimating the total revenue the city’s utilities will need in fiscal year 2027 and proposing rate‑design changes to recover those costs.
“The estimated revenue needed in FY 2027 is about $2,400,000,” Raftelis vice president Jen Tavances told council members, saying capital projects — notably work on the treatment plant — are significant drivers of the revenue requirement. Raftelis said that figure represents about a 24% increase over the revenue modelled for FY26 and that the city could phase any increases over multiple years.
Why it matters: the study translates the revenue requirement into specific changes in how the city charges water, sewer and storm‑drain customers, and each design choice affects different customer classes differently. Council members and staff said they will return to policy questions later, leaving the options on the table for further direction and public notice.
Major recommendations and examples
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