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City of Molalla
PO Box 248
Molalla, OR 97038

City Of Molalla
Town Hall Meeting


November 4th, 2015
Utility Rates
The top five water industry issues identified for 2014 are:
State of water and sewer infrastructure
Long-term water supply availability
Financing for capital improvements
Public understanding of the value of water resources
Public understanding of the value of water systems and services
- 2014 AWWA State of the Water Industry Report
City Hall
Meeting Purpose
The Molalla City Council is holding this Town Hall meeting to inform the community of needed increases for Sanitary Sewer and Water utility rates.
Why this is necessary
Many residents or business owners may remember back in 2006 the City increased Sewer rates and then in 2009 the City increased Water rates. The former changes were the last rate increases for the City of Molalla. Following a 10 and 7 year hiatus from rate increases the City has examined the current rate structure and found that costs have increased 29.8% since 2006 and current rates have not kept up with service costs or maintenance needs.
Contact Us
City of Molalla
117 N. Molalla Ave. (In person)
PO Box 248 (By mail)
Molalla, OR 97038

(503) 829-6855
watrbil@cityofmolallla.com
Visit us on the web: www.cityofmolalla.com
Rate Studies
Wastewater
In 2006 the City hired Donovan Enterprises to conduct a rate study for sanitary sewer rates. This study suggested a rate increase in 2006 but also a rate increase in 2007. Rates were increased in September of 2006 but no increase occurred in 2007. In addition, the study suggested that the City revisit the rate study periodically in order to monitor inflation rates and the cost of providing service. The hope would have been that smaller incremental increases would be best for the consumer. However, after 10 years of no increase the City needs between a 27% and 35% increase in sanitary sewer rates to meet today’s service demands and requirements
Water
Similarly, the water rate has not kept up with service costs since the last increase in 2009. Donovan Enterprises provided the City with a rate structure indicating a need for increase of 6% in 2009 followed by incremental increases near 2% over the next 5 years. The first increase in 2009 was the only increase that took place. Today we are finding that with service increases as well as regulatory changes the City will need a 20% increase to keep up with service and capital needs.

Rate Impacts
What does the increase look like to me?
2 Person Single Family Home
(Winter Use Averages)

Current Rates:
Sewer - $47.67
Water - $34.11
New Rates:
Sewer (Jan 2016) - $64.42
Water (July 2016) - $41.01

5 Person Single Family Home
(Winter Use Averages)

Current Rates:
Sewer - $70.42
Water - $54.23
New Rates:
Sewer (Jan 2016) - $95.20
Water (July 2016) - $68.29
The City of Molalla strives to deliver cost-effective, quality municipal services, protect public health and safety, encourage public involvement in civic affairs, promote a diversified economy and community livability, safeguard the environment, and provide family-oriented recreational opportunities.
- Kim Abercrombie