Another sewer rate hike looms in 2010

By Nicole DeCosta

The Lake Oswego Review, Nov 5, 2009

Costs from the $110 million Lake Oswego Interceptor Sewer project will require another sewer rate hike beginning July 1, 2010.

The Lake Oswego City Council heard the results of a rate analysis done by FCS Group last week.

The rates will likely be discussed again at an annual study session on city rates and charges on Nov. 17. The public hearing on the city rates will be on Dec. 1.

The rates would rise for 85 percent of the city’s customers who are connected to pipes that flow effluent across Oswego Lake to the Tryon Creek Wastewater Treatment Plant on Foothills Road.

The rates would support sewer maintenance projects, such as the LOIS project — which replaces an 18,000-foot sewer pipeline in Oswego Lake and repairs or replaces connecting sewer lines — and operating costs to treat sewage.

The city plans to pay for LOIS using bonds backed by property taxes and higher utility rates. In April, the city approved a 30 percent increase for the 2009-2010 year to cover the debt service of $60 million for the first phase of the LOIS project. At that time, the council authorized a full analysis of waste water utility rates and anticipated future increases to correspond with future bonds.

The analysis shows a need for rate increases through the 2013-2014 year. The recommendation is a 30 percent rate increase for 2010-2011 and 2011-2012, a 14 percent in 2013-2014 and three percent cost of living increase thereafter.

The study gave two options: 1) an increase to both the fixed charge and the rate applied to volume of water that is used, and 2) an increase to just the fixed charge with the volume rate staying steady.

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