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The Road to a Secure Drinking Water Future

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The Road to a Secure Drinking Water Future
Tigard continues to implement the Lake Oswego � Tigard Water Partnership to assure a water supply for the future. A project of this magnitude requires a plan. The project has an engineering roadmap for planning, design and construction and a Water Financial Plan to identify the funding necessary to complete the partnership project.

When we finally reach our destination�construction complete and water flowing�we will no longer need to purchase water from Portland. The Lake Oswego � Tigard Water Partnership offers the most beneficial option at the least cost to ratepayers. Instead of paying Portland $2.5 million each year for water, that money will help pay for an ownership share in a high quality drinking water source, along with an ability to control future costs.

The Water Financial Plan Answers Four Key Questions:

Where are we now? We currently buy most of our water from the City of Portland. One-third of every customer dollar goes to Portland to purchase water for the Tigard Water Service Area (TWSA). We appreciate Portland�s commitment to providing water to Tigard, but their costs will increase over the coming years and the TWSA would be unable to provide input on how Portland�s water system is managed.

Where do we need to be? In 2016, we will reach our final destination: delivering great tasting water to customers via the Lake Oswego � Tigard Water Partnership. The partnership offers TWSA customers more control over their future water needs.

What�s the best route to get there? Tigard�s share of the project costs will be financed through the sale of water revenue bonds to be repaid over 20 to 25 years. The best route is borrowing funds at a low interest rate over a long period, distributing repayment costs fairly between today�s customers and future customers. Rates must rise significantly in early years to set aside reserve funds required by bondholders.

How much will it cost to get there? Our current best estimate is $123 million for TWSA�s portion. As we travel down the road toward a secure drinking water future, initial cost estimates will be updated as we better understand design and construction needs.