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Tigard City Council Sets Water Rates

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	City of Tigard 13125 SW Hall Blvd. Tigard, Oregon 97223	Press Release November 10, 2010
For Immediate Release
Contact:	Utility Division Manager John Goodrich City of Tigard 503-718-2609 johng@tigard-or.gov

Tigard City Council Sets Water Rates
On November 9, the Tigard City Council voted unanimously to increase rates for water customers within the Tigard Water Service Area. Tigard's drinking water system serves 57,000 residents of Durham, King City, two-thirds of Tigard, and the Tigard Water District.

The new rates take effect on January 1. Tigard's current water rate for a typical household is $30 per month. That will increase to $37 per month under the new rates. Rates are expected to increase another 14 percent per year from 2012 through 2014.

The increase is needed to pay for Tigard's share of the improvements for the Lake Oswego-Tigard Water Partnership. In August 2008, the two cities joined forces to improve and expand Lake Oswego's existing water system to meet both communities' future needs. For Tigard's investment, it will gain ownership in the Lake Oswego system and will receive 14 million gallons of high-quality drinking water per day starting in 2016.

"There's no doubt about it - this sort of increase is painful. But this is the least costly option," said Tigard Mayor Craig Dirksen. "There are a million reasons why this makes sense."

For years, Tigard has purchased water from the City of Portland. Looking ahead, the cost of Portland water is going up, and Portland cannot meet all of Tigard's future demand. Improvements to the Lake Oswego water system are slated to be operational when Tigard's water supply contract with Portland expires in 2016.

Councilor Sydney Webb celebrated the end of Tigard's search for water. A former member of the Tigard Water Board, Webb cited two decades of studying and pursuing an array of long-term water options.

A preliminary estimate indicates Tigard's share of improvements to upgrade the partnership's major facilities will be $118 million. These costs will be funded through higher water rates and increased system development charges (SDCs), one-time fees paid by new development. The improvement projects will be debt-financed, with both cities selling bonds to be repaid over a 25-year period.

The City Council also approved a tiered rate structure that encourages water conservation. Under the old rate structure, rates did not vary based upon the quantity of water used. With the new tiered system, most customers will pay more for the water they consume beyond certain threshold amounts.

The city also plans a switch to monthly billing. This will replace the current bi-monthly billing cycle and provide customers with a more timely account of their water consumption.

Additional information is available at the Lake Oswego-Tigard Water Partnership website.