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City Council Learns More About Future Drinking Water Costs

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	City of Tigard 13125 SW Hall Blvd. Tigard, Oregon 97223	Press Release July 23, 2010
For Immediate Release
Contact:	Public Works Director Dennis Koellermeier City of Tigard 503-718-2596 dennis@tigard-or.gov Lake Oswego \| Tigard Water Partnership

City Council Learns More About Future Drinking Water Costs
On Tuesday, Tigard City Council was presented with a forecast of drinking water system costs for the next 20 years. Customer rates are projected to rise significantly as Tigard finally gains ownership of a drinking water source.

The figures unveiled Tuesday did not surprise the City Council. Over the last several years, Tigard has investigated all available water system ownership options, and partnering with Lake Oswego is the least-cost option for ratepayers. "Our priority is for Tigard to own its water source. That will be cheaper in the long run than continuing to buy water from Portland", said Mayor Craig Dirksen. "Drinking water delivered to your home for only a penny a gallon is still a great value", notes Tigard Public Works Director Dennis Koellermeier.

For years, Tigard has purchased water from the City of Portland. Looking ahead, the cost of Portland water will continue to rise and Portland will not be able to meet all of Tigard's needs in the future.

In August 2008, the Cities of Tigard and Lake Oswego agreed to merge their water systems. The Lake Oswego Tigard Water Partnership will upgrade and expand Lake Oswego's existing water facilities to meet both communities' future needs.

When the water system upgrades are completed in 2016, Tigard will receive 14 million gallons per day of treated drinking water from the Clackamas River. The improvements are timed to be ready before Tigard's current water supply contract with Portland expires.

At their July 20 workshop, City Council members considered a report from consultants analyzing how Tigard can pay for the cost of ownership though future water rates and systems development charges (SDCs) - one-time charges paid by all new development to offset the costs of new capacity.

A preliminary estimate indicates Tigard's share of capital costs to upgrade the Partnership's major facilities will be $118 million. These costs will be funded through higher water rates and increased development charges. The project will be debt-financed, with both cities selling bonds to be repaid with interest over a 20 to 30-year period.

The same financial figures were presented a week earlier to the Intergovernmental Water Board, an advisory body that included representatives of water system customers outside Tigard's boundaries. Tigard's drinking water system serves a population of 57,000 in the cities of Tigard, Durham, King City and the Tigard Water District area.

Further details on water rates and SDCs will be available in the fall. The City Council is expected to take final action on November 9 to establish new water rates and SDCs.

For more information, contact Dennis Koellermeier, Tigard Public Works Director or visit the Lake Oswego Tigard Water Partnership website.