The City’s wastewater rate consultant recommended a 5.5% rate increase for next fiscal year.  This recommendation was based on evaluation of the city’s forecasted wastewater operations and maintenance (O&M) costs for next fiscal year together with proposed construction projects and debt service. The City of Coos Bay Budget Committee concluded the FY 2021-2022 budget meeting on April 15, 2021 with approval of the proposed budget which included a 5.5% increase in sewer user rates. In order to implement the sewer user rate adjustment commencing with the June 2021 billing cycle, Resolution 21-10 would need to be approved. The sewer fee portion on the Coos Bay-North Bend Water Board billing will increase, based upon the rate study average use of 560 cubic feet per household, approximately $3.95 per month. The revenue will provide funding for O&M, sewer line replacements, pump station rehabilitations, storm drain repairs, and the capital improvements planned for next fiscal year.  Last year's rate increase was 5.5%.

The wastewater user fees are used to operate and maintain (O&M) the city's two wastewater treatment plants, two dozen pump stations, and 90 miles of sewer mains.  It is rare for a city the size of Coos Bay to have two wastewater treatment plants or as many pump stations.  The user fees are also used to pay debt service on loans for capital improvements to replace or refurbish the treatment plants, pump stations, and sewer mains.  The city uses a rate consultant to recommend the necessary rate increases to pay for O&M costs, capital debt service costs, and the cost of upcoming capital projects.  Some of the upcoming projects associated with this recommended rate increase include wastewater treatment plant 1 upgrade final design, several sewer line and storm line repair projects, and sponsorship option water quality projects that include green parking lots and cleanup of the old Englewood School site.  By steadily raising wastewater user fee rates annually over the past several years, city council has not had to implement a steep rate hike spike in order to ensure adequate funding for the wastewater system.  By anticipating the future debt service for these upcoming projects we can continue to avoid steep spikes in future sewer rate increases. 

A comparison of rates from other communities along with a history of rate increases are attached.  Approving the resolution at this time will provide the Coos Bay-North Bend Water Board time to change their computer programming and provide a full 12 months of billings at the adjusted rate.