Nehalem council approves 8% water-rate increase, authorizes OAWU plan update

The Nehalem City Council voted 3-0 on July 14 to raise water rates by 8 percent and authorized staff to proceed with a Water Management and Conservation Plan update by the Oregon Association of Water Utilities (OAWU).

City Manager Lori Longfellow recommended the rate increase after reviewing the 2022 water-rate study and noting that rates have only been raised once since 2022. She said the city budgeted for new meters that should improve revenue collection and that annual adjustments tied to inflation help fund necessary capital improvements. Council President Hilary Howell moved to raise the rates 8 percent; Councilor Doug Larzelier seconded the motion. The motion passed unanimously (Yes: Howell, Larzelier, Quintana).

Tim Tice of the Oregon Association of Water Utilities told the council that material costs have risen substantially in recent years, that the water fund looks better than before the 2022 increase but will lag without timely adjustments, and that replacing older meters could add roughly 6 to 7 percent in revenue depending on prior meter inaccuracy. Longfellow said the city’s Water Management and Conservation Plan must be renewed by November 2026 and that the plan, required by the Oregon Water Resources Department, is tied to eligibility for long-term loans; OAWU provided a quote included in the packet. Mayor Phil Chick noted the city owns roughly 900 acres of timberland, including watershed, and said that should be reflected in the plan. Councilor Doug Larzelier moved to proceed with the OAWU proposal; Council President Howell seconded. The motion passed 3-0.

The council took no immediate additional spending action at the meeting beyond authorizing the plan update and approving the rate change; staff will implement the meter program and follow the OAWU plan process as described.