Letter to the Editor – Water and Sewer Rate Questions

To the Editor:

We recently received this notice about the new water and sewer rates, and I’m trying to understand why they’re going up after voters approved a bond for infrastructure improvements. I also read the reporting on PHMOmag.

On April 2, 2024, voters authorized up to $10 million in water and sewer revenue bonds. I understand the bonds are repaid from water and sewer revenues, not property taxes. But the city’s explanations about rates and debt seem hard to follow.

At the March 24, 2025, council meeting, the city cited Middle Big Creek Sewer District debt and regular sewer costs as reasons for proposed rate increases. It cited higher water purchase costs and a gap between water revenue and expenses for the water increase. Then, at the Aug. 11, 2025, meeting, the finance manager said the new bond installment could be paid without a rate increase set aside specifically for that debt.

The September 2026 rate study, presented at the Sept. 28 council meeting, lists about $475,000 a year in current debt payments. It says rate increases are needed to meet debt obligations and build reserves, and assumes more borrowing for water projects in future years.

Maybe these statements refer to different costs or budget years. If so, the city should explain that plainly. How much of the latest increase goes to existing bond payments? How much covers future borrowing, day-to-day costs and reserves? And how does that fit with the 2025 statement that the bond installment would not require a rate increase specifically for its debt?

Should residents be required to piece together the answer from budget documents and council packets?  I’m not saying anything illegal was done; it is just confusing for the average person to follow. 

M. N. Pynnion
Pleasant Hill