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New Water Rates in Effect July 1, 2009
The City of Lake Oswego has adopted new water rates for all customers and a new tiered water rate structure for single family residential customers. Both will change the way your water bill looks and affect the amount you pay for water use. The new rates and tiered structure will go into effect on July 1, 2009. Customers will see these changes reflected in their July and August water bills.
Please read on below for more information on rate changes, calculating rates, and estimating impacts for your household or business.
For more information, please call the Utility Billing Department at (503) 635-0265.
Rate Changes
Multifamily and Commercial: Rates will increase from $0.88 per CCF(100 cubic feet) to$1.21 per CCF.
Irrigation Meters: Customers with separate irrigation meters will see rates increase from $0.88 per CCF to $2.05 per CCF.
Single-Family Residential: The City had implemented a tiered rate structure for single-family residential customers. More information about changes for single family residential users can be found here.
Purpose
The new rates are needed to expand the City's water supply. Thanks to careful strategic planning, Lake Oswego will still have lower water rates than many cities in the metro area.
The water rate increases:
- Pay for water system expansion required for Lake Oswego's future demands,
- Reward conservation,
- Reduce water waste and
- Meet regulatory requirements
Helpful Information
Background
Why New Rates?
In 1968, the City constructed a system of pipes, pumps, reservoirs, and water treatment facilities to divert, treat, and supply water to your tap from the Clackamas River. These systems are still in use today, but are in need of replacement due to age and inadequate capacity.
Expanding and replacing these systems will take several years to complete and is very expensive. Reducing water waste and use now will give the City enough time to plan, design, and construct new, expanded water supply infrastructure to meet long term water needs. To minimize the cost of this new, expanded system, the cities of Lake Oswego and Tigard formed a water supply partnership. In exchange for providing a secure, stable
supply of water to Tigard from the new system, Tigard agreed to fund a majority share of the expansion costs. With Tigard as a partner in the planned expansion, water rates will need to increase over the next several years by about 15% annually. Without Tigard, rate increases would exceed 21% annually.
The Lake Oswego Sustainability Plan, adopted in 2007 set the following goals for the next twenty years:
• Establish a sustainable water supply
• Meet water demand using best conservation practices
• Flatten annual average consumption
• Assure zero loss of biodiversity
• Create productive natural systems and
• Build habitat for forests and riparian areas
The Lake Oswego Water Management and Conservation Plan describes water management, conservation, and curtailment programs to guide the wise use and stewardship of the City’s water supply. The plan set a five-year benchmark to examine alternate rate structures that encourage conservation and to gain acceptance from the community and adoption by the City Council.
In 2008, the City Council established as a Council Goal the implementation of a new pricing structure in its water utility to encourage conservation.
Water Rates Today
The City’s water utility recovers its costs of service primarily through sales of water to its retail and wholesale customers.
The utility generates bills for four main customer classes:
- Single family residential
- Multi-family residential
- Non-residential
- Irrigation-only
Tiered Rate Structure for Single Family Water Customers
The single family class is by far the largest class, accounting for 89% of total bills and over 63% of total annual water consumption.
Water rates are currently comprised of a fixed and a variable fee. Added together they result in the cost for water customers are billed for every other month.
- The variable rate is currently $0.88 per 100 cubic feet
- The bi-monthly fixed rate is currently $26.96 for a single family home
The table below shows the rates over the past 12 years for the Single Family Residence Class, with typical bi-monthly water bill amounts shown for a family using 20 CCF of water every other month.
City of Lake Oswego Single Family Residence Class Water Rates
(1996 - 2008) |
Year |
Fixed Rate
(bi-monthly) |
Variable Rate
(per CCF) |
Typical Bi-monthly water bill (20 CCF) |
| Current Rate (2008-09) |
$26.96 |
$0.88 |
$44.56 |
| 2007 - 2008 |
$26.18 |
$0.85 |
$43.18 |
| 2006 - 2007 |
$25.42 |
$0.83 |
$42.02 |
| 2005 - 2006 |
$25.42 |
$0.83 |
$42.02 |
| 2004 - 2005 |
$25.42 |
$0.83 |
$42.02 |
| 2003 - 2004 |
$25.42 |
$0.83 |
$42.02 |
| 2002 - 2003 |
$25.42 |
$0.83 |
$42.02 |
| 2001 - 2002 |
$25.42 |
$0.83 |
$42.02 |
| 2000 - 2001 |
$25.42 |
$0.83 |
$42.02 |
| 1999 - 2000 |
$24.20 |
$0.79 |
$40.00 |
| 1998 - 1999 |
$21.42 |
$0.70 |
$35.42 |
| 1997 - 1998 |
$18.94 |
$0.62 |
$31.34 |
| 1996 - 1997 |
$16.06 |
$0.53 |
$26.66 |
Understanding My Rate
How your rate is calculated
Water rates include a fixed and a variable charge. The fixed charge is the price that all customers pay bi-monthly regardless of how much water they use. The fixed charge is $26.96 for a single-family residential customer. Added to that is the variable charge for the amount of water used; it is currently billed at a rate of $0.88 per CCF (100 cubic feet).
The new rate structure also has a fixed and a variable charge. The bi-monthly fixed charge for 2009 - 2010 will remain at $26.96. Added to the fixed charge is the variable charge, which is tiered depending on how much water is used
- Tier 1: The first 0 - 16 CCF of water used will be billed at $0.90 per CCF.
- Tier 2: The next 17 - 32 CCF of water used will be billed at $1.35 per CCF.
- Tier 3: The remaining 33 CCF or more of water used will be billed at $2.74 per CCF.
How to estimate your new water bill
To find out how the changes affect you, use your most recent water bill to compute how the new rate will change your bill or use the calculator available by clicking on the water drop below. The calculator will help you determine the water portion of your utility bill based on the new rates. Feel free to visit the Master Fees and Charges website for other rate changes. You can also call the Utility Billing Department at 503-635-0265 for assistance.
Water Rates
The following table shows adopted and proposed annual rate changes for the next five years:
Customer 1: Below Average Water Use
Customer 2: Average Water Use
Customer 3: Above Average Water Use
Resources
Water Conservation Specialist, Kevin McCaleb, (503)675-3747
Call Kevin to schedule a FREE water audit at your home or business.
Utility Billing Department (503)635-0265
Regional Water Providers Consortium, www.conserveh20.org
Lake Oswego Water Conservation Website: www.ci.oswego.or.us/wtp/conservation.htm
Informational Booklet
Frequently Asked Questions
Lake Oswego Sustainability Plan
Lake Oswego Water Management and Conservation Plan
Lake Oswego Water Cost-of-Service Rate Study Draft Report
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