Salem Council discusses FY2027 utility rate changes; staff to draft resolution

Finance Director Jeffrey Nielson asked the Mayor and City Council for direction on proposed FY2027 rate changes and related budget directives during the work session preceding the May 6 council meeting.

Nielson presented recommended adjustments across enterprise funds for culinary water, sewer, garbage/recycling and power to meet FY2027 budget goals and noted staff would prepare a resolution to formalize changes. Councilmember Craig Sacco used his own utility bill as an example and estimated the proposed changes would raise his monthly bill by approximately $7. Mayor Cristy Simons suggested using tiered rates for pressurized irrigation (PI) and notifying higher water users via door hangers or letters. Staff said they will share water conservation tips and promote the Sensus customer portal for usage monitoring.

Following discussion the Council agreed on a proposed 2% increase to water rates, no increase to sewer rates, a 1% increase to garbage rates and to move PI rates to a tiered structure based on usage. A proposed 6% increase for power rates was discussed but recorded as still under consideration. Councilperson Tim De Graw requested the creation of informational materials to explain rate changes to residents. Finance Director Nielson will coordinate with City Attorney Walter Bird to prepare a resolution associated with the proposed budget changes.

What’s next: staff will draft resolution language, create outreach materials for customers, and return to council with the formal resolution and supporting analysis.