As part of the 2015-2017 biennium budget process, the Bend City Council reviewed utility rate changes. These changes were implemented July 1, 2015.

The changes include the water and sewer rate structure modifications adopted by Council Resolution on December 17, 2014 as well as increases in customers’ monthly charges for water, sewer, and stormwater. Utility rates are increased in most years to maintain service levels in compliance with federal and state regulations, to cover the escalating costs of various materials and services, and to fund system improvements where needed through utility infrastructure projects. For further information on the utility rates now in effect, click here.

Rate Modernization Background

The City Council set a goal of utility rate modernization in 2014. Council considered rate objectives of equity, affordability, efficient use, revenue stability, rate stability, public acceptability, and administrative feasibility. Council, with community input, reviewed a range of water and sewer rate structure scenarios and the estimated bill impacts for different customer classes.

The Council selected proposals on November 5, 2014 to take forward into a public comment period. The water and sewer rate structure proposals were shared with the public during the month of November online, in open houses, in press releases and through direct outreach to interested parties.

Feedback from the public comment period was shared with Council on December 3, 2014 at which time the Council chose to move forward with the changes to the sewer rate structure as proposed. They chose to move forward with the changes to the water rate structure as proposed with one minor revision of setting the revenue generated from the monthly meter charges to 40% of the total revenue.

Council adopted a resolution on December 17, 2014 establishing water and sewer rate structure principles to govern the way in which the City collects its water and sewer rates to meet system revenue needs on an equitable basis.

Water Rate Structure Changes

• Continue to collect total system revenue needs
• Maintain the existing rate structure for all customers charging a monthly fee by meter size + volume charge
• Adjust monthly meter charges to follow American Water Works Association (AWWA) standard meter capacity ratios
• Eliminate 400 cubic foot allowance and bill for all water used

Sewer Rate Structure Changes

• Continue to collect total system revenue needs
• Maintain and expand customer class designations to include separate rate structures for:
  • Single Family Residential
  • Multi Family Residential
  • Non-Residential
    • Standard
    • Extra Strength Low 
    • Extra Strength Medium 
    • Extra Strength High 
    • Extra Strength Super High
• Remove the residential monthly flat sewer fee and charge all customers a monthly account charge plus volume charge thereby
• Eliminate the non-residential 1,000 cubic foot allowance and bill for all volume 
• Bill sewer volume based on winter water usage as a way of measuring indoor water usage 
• Begin to incorporate extra strength charge (ESC) differential in volume charge 
• Collect additional monthly fee from ESC customers to administer ESC program

Workshop Information

Rate Structure Temporary Working Group

• Roster
• Memorandum to Council
• Resolution 2956

Other Reference Materials

• Project Timeline
• 2014-2015 Fee Schedule Resolution