Milton-Freewater adopts $47.9 million budget and approves 5% utility rate increases

Milton-Freewater — The City Council on June 8 adopted a $47,886,307 budget for fiscal year 2026–27 that includes a property tax levy of $3.7499 per $1,000 of assessed value, $100,000 local option allocations for senior transportation and parks and recreation, and a $320,000 general obligation bond allocation for a new police station. The motion to adopt Resolution No. 2601 passed with Councilor John Lyon dissenting; other votes on budget-related items were unanimous.

Finance Director Laurie Bubar told the council the budget includes $2,492,122 in unappropriated fund balance and reserves and anticipates no reductions to public services. The proposed budget also incorporates a set of utility rate adjustments — each set at 5% and effective July 1, 2026 — that the council adopted as companion resolutions to the budget.

Public works staff presented the utility changes: a 5% water rate increase (Resolution No. 2602) intended to cover higher chlorine costs and grant match requirements, estimated to raise the average customer bill by about $1.97 per month; a 5% sewer rate increase (Resolution No. 2603) citing unplanned maintenance including recoating the primary digester at about $300,000, estimated at $1.82 per month; a 5% solid waste rate increase (Resolution No. 2604) driven primarily by fuel costs (staff reported the fuel bill rose from $2,571 in May 2025 to $5,597 in May 2026) and landfill operations, estimated at $0.93 per month for a 90-gallon residential container; and a 5% electric rate increase (Resolution No. 2605), which staff said equates to about $6.00 per month for a 1,400 kWh residential account and helps cover a required local match for a Grid Resilience Grant and higher wholesale and equipment costs.

Electric Superintendent Richard Jolly explained the city has applied to the Oregon Department of Energy Grid Resilience Grant program and must commit matching funds before a final grant agreement; staff estimated a Phase 1 project cost of roughly $2.86 million with the federal portion at $2,145,000 and the city match at $715,000. Jolly also told council that a court-ordered increase in Bonneville Power Administration spills will raise BPA rates and that transformer prices have risen, both factors contributing to the electric rate proposal.

Separately, the council held a public hearing on State Revenue Sharing funds of $81,988 and adopted Resolution No. 2600 electing to receive the funds for public safety purposes. Councilor Wes Koklich said he preferred using the State Revenue Sharing funds for Community Building and Aquatic Center repairs but staff said the funds were proposed for public safety; the hearing closed with no public testimony.

The council also adopted Resolution No. 2599 to account for transfers required by unforeseen revenues and expenditures during the current budget year. All budget- and rate-related resolutions were adopted at the meeting; the budget resolution carried with one dissent from Lyon, while the associated rate resolutions passed unanimously.

The budget and rate changes take effect July 1, 2026. The council will implement the adopted levies and rate schedules and continue oversight as staff move forward with grant matches and capital projects.