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Milwaukie staff report negative PFAS tests so far, preview loans and utility revenue recommendations
Summary
Water engineering staff told council Feb. 3 that PFAS sampling has come back negative to date; staff received approval for a $6 million SRF loan (with $3 million forgivable principal) for treatment projects and previewed utility revenue targets that would raise system revenue roughly 8% per year in the coming biennium.
City water engineering staff updated council on water treatment, PFAS sampling and utility revenue projections during the Feb. 3 work session.
Staff reported that initial PFAS testing returned negative results for sampled wells. They described ongoing work to evaluate transferring water rights, options to address wells with iron and manganese, and a phase‑1 design for a raw‑water pipeline from Wells 7 and 4 to the upper treatment plant at 40th and Harvey.
Financing: staff said the city received approval for a Safe Drinking Water loan package totaling $6,000,000; roughly $3,000,000 of that principal would be forgivable under the loan terms discussed. Staff plan to return in April with an authorization package to move forward with loan acceptance and associated contract actions.
Rates and revenue: staff told council they recommended increasing utility revenue targets by about 8% in each year of the next biennium to cover program needs, while noting that the recommended revenue target is not the same as the final customer rate and that detailed rate design will follow. Staff said wastewater and stormwater had different assumptions (some 0% increases projected) and that a rate consultant and QUAC discussions are scheduled before final proposals.
Next steps: staff expect to present detailed rate design options to QUAC in March and return to council in April with a proposed fee schedule and loan authorization for the treatment project. No final rate ordinance or vote was recorded at the Feb. 3 session.
This article is based on staff remarks and council discussion at the Feb. 3 Milwaukie work session.
