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Council adopts 4% sanitary sewer rate increase to shore up operations and capital savings
Summary
Council approved a 4% increase to sanitary sewer user fees effective July 1, 2026, to address an estimated $500,000 operational gap and to preserve pay‑as‑you‑go capital funding; the measure passed 4–2 after public testimony urged caution pending capital planning.
The McMinnville City Council voted to adopt Resolution 2026-29, approving a 4% increase to the sanitary sewer user-fee schedule effective July 1, 2026.
Staff presented the increase as a response to rising operations-and-maintenance costs — chemicals, fuels, utilities and replacement parts — and an estimated operating fund gap of about $500,000 compared with projections from a 2022 rate study. Eric Grimstad, wastewater services manager, told the council the increase focuses on day-to-day operations rather than funding major capital projects; the city anticipates continuing to set aside roughly $5–6 million annually for capital from the wastewater fund.
Grimstad and the public-works director said the average residential customer would see an increase of approximately $2.60 per month, moving an average monthly bill from about $64.50 to about $67.10. Staff said commercial impacts vary widely; the largest industrial user could see an increase on the order of $500 per month. Councilors asked whether the 4% was additive to budgeted amounts; staff said the budget had assumed smaller increases and that the 4% aligns operating revenues with current spending while preserving capital reserves under the city’s no-debt model.
Public testimony included Mark Davis, who urged sticking to a previously communicated 2.5% schedule until the council completes capital-priority decisions and complained about sewer-fund loans to other city projects. Council discussion focused on balancing operating needs, capital savings and funding models for long-term wastewater projects; staff noted the wastewater master plan consultant has identified a long list of capital projects with order-of-magnitude costs ranging from roughly $75 million (carry-forward estimate) up to $300 million for an all-in program, and that federal grants/loans may be sought for some large projects.
The motion to adopt Resolution 2026-29 passed by roll call vote four to two (Benner, Giri, Cunningham and Council President Peralta voting yes; Tokolski and Chennowith voting no). Staff said they will implement the new fee schedule on July 1 and continue work on the wastewater master plan and capital-prioritization options for council consideration.
