Utility Rate Increase Information

In 2024, the City was awarded a federally-funded Community Development Block Grant to plan and construct a new City water system. This program was an alternative to a property bond to fund the construction of a new water system, which would have resulted in a heavy increase to City property tax bills. The other alternative is taking out a loan from the State of Oregon. The City still owes over $226,000 in loans to the State of Oregon from a similar project in 2009, which will not be paid off until 2032 and is currently paid for with water utility revenue. 

In order to qualify for the CDBG, the City is required to raise utility rates to a regional Affordability Rate calculated by the State of Oregon. This final rate is $51.20, which means an annual increase in water rates of $2.50 per year through 2027, then a final increase of $1.30 for the final year. 

The City intends to apply for a Community Development Block Grant to replace our wastewater treatment plant after the water project is completed. This grant will similarly result in an increase in sewer rates to reach the regional Affordability Rate, and the City is raising this rates incrementally now in anticipation of the future rate increase. 

The City Council is currently in the process of revising water and sewer rate ordinances, directing the Administration to draft municipal code amendments that require two public hearings for every water and sewer rate increase. The Administration is also drafting resolutions increasing the eligible number of senior citizens who qualify for a senior discount. Elgin also recently financed early retirement of the industrial park economic development loan, which was paid for with City utility funds in previous years, thus freeing up additional funds to pay for water and sewer. The annual water debt payment for the 2009 loan remains around $37,800, which is entirely funded by water revenue in an economic environment where capital costs are rapidly increasing due to inflation and tariffs.

For more information, please contact cityadm@cityofelginor.org.