City of Tigard > News > Tigard City Council Considers Increase in Water Rates

Tigard City Council Considers Increase in Water Rates

Home > News > Tigard City Council Considers Increase in Water Rates

	City of Tigard 13125 SW Hall Blvd. Tigard, Oregon 97223	Press Release August 6, 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

Tigard City Council Considers Increase in Water Rates
Rate increases are proposed to help pay Tigard's share of costs for the planned merger of Tigard and Lake Oswego water systems. An initial rate increase of 7 percent would begin on October 1, 2010, consistent with a four-year financial plan approved by City Council in 2007.

Another water rate hike of up to 30 percent may take effect in January 2011. This and future water rates will be considered by the City Council when they receive the long-term water financial plan on November 9.

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 on-line before Tigard's water supply contract with Portland expires.

The merged water system promises to give Tigard an ownership stake in a drinking water source. "Tigard has been searching for a stable drinking water source on behalf of its customers for many years", notes Tigard Public Works Director Dennis Koellermeier. Ownership for our rate payers is still a good value at a penny per gallon delivered to their homes.

Significant rate increases are projected for the next three years. Tigard plans to sell bonds to finance the City's share of water system improvements. Funding sources for the water partnership include bonds issued by Tigard and Lake Oswego to be repaid over the years by customers' monthly water rates and SDCs (systems development charges) paid by new development. Both Lake Oswego and Tigard are increasing water rates to pay for the project.

The rate increases are needed to set aside enough funds in time to assure lenders they will be repaid. Reserve requirements have risen significantly in recent years in the face of uncertainties in municipal bond markets.

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.

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