Philomath committee reviews utility rate study; storm fund reallocation adds a storm worker

Philomath finance staff reviewed results of a recent utility rate study and how new rates change the water, sewer and storm funds.

Mike (finance staff) explained the rate study increased metered water and sewer revenue projections and restructured storm charges so the storm fund more accurately reflects the staff time and work previously subsidized by other funds. "The storm drain fee went from about $117,000 to a projected $472,000," Mike said, adding the reallocation also reflects adding a full storm worker position to the storm budget. Staff emphasized that much of the apparent increase reflects accounting and allocation changes rather than a sudden fourfold rise in physical workload: it shifts existing storm-related staff time and permit obligations into the storm fund so those costs are paid from the appropriate utility instead of being subsidized elsewhere.

For water, staff said the utility rate study built debt service and a schedule for the water treatment plant into the rates; staff noted the water treatment plant construction cost estimate will be revised (staff referenced an updated project figure near $6.7 million) and that financing options under state public‑works loans are being evaluated. Committee members asked to receive the full rate‑study report and a side‑by‑side of old versus new rates; staff said they will provide those materials and that the new rates take effect July 1.

Committee members also asked about how allocations to the Land/Building/Equipment (LBE) fund are computed and requested follow‑up breakdowns for computer support, contracted services, and vehicle/equipment cost increases. Staff agreed to return with those details at the May 27 meeting.