HomeMy WebLinkAboutAdmin Order 58-26-07-F -- WW User Fee Amendments (FY27)Administrative Order - Page 1 of 2
ADMINISTRATIVE ORDER NO. 58-26-07-F
of the
City Manager of the City of Eugene
SETTING WASTEWATER USER FEES AND SUPERSEDING THE FEE
SCHEDULE ADOPTED BY ADMINISTRATIVE ORDER NO. 58-25-04-F.
The City Manager of the City of Eugene finds as follows:
A. Section 6.411 of the Eugene, Code, 1971 (EC), authorizes the City Manager to
determine and set fees and charges to be imposed by the City for wastewater service, regional
wastewater service, and stormwater service. Pursuant to that authority, on May 29, 2025,
Administrative Order No. 58-25-04-F was issued amending the Wastewater User Fee Schedule.
B. On April 24, 2026, I issued Administrative Order No. 58-26-07 ordering that notice
be given of the opportunity to submit written comments on the proposal to set new wastewater
user fees. The Notice was posted and published, specifying that comments on the proposed
amendments could be submitted orally at the public hearing on May 14, 2026, or in writing until
5:00 p.m. on May 14, 2026. Comments received during the public comment period are addressed
in the City Manager's Findings Supporting Proposed Fees, attached as Exhibit B to this Order.
C. Based on my investigation of the revenue needs of the City in providing wastewater
service using the criteria in EC 6.411(2), I find that the fees should be set as proposed. (See Exhibit
B.)
D. The unamended wastewater fees adopted by Administrative Order No. 58-25-04-F
are incorporated into the Fee Schedule attached as Exhibit A to this Order.
On the basis of these findings, I order that:
1. A copy of this Order shall be promptly forwarded to the Mayor and City Councilors.
Unless reviewed by the Council pursuant to EC 6.411(1)(f), this Order shall become final on the
11th day after the date it is rendered.
2. Notwithstanding the effective date of this Order as set forth above, the Wastewater
User Fee Schedule attached as Exhibit A to this Order is the schedule of fees to be charged for the
described services effective for all bills issued on or after July 1, 2026.
Exhibit A
to Administrative Order No. 58-26-07-F
Page 1 of 2
WASTEWATER USER FEES
(Effective for all bills issued on or after July 1, 2026)
RATE COMPONENT Rate
RESIDENTIAL:
Per Account Fee:
City of Eugene .................................................................................................. No charge
MWMC ............................................................................................................. $17.71
Sanitary Sewer Flow-Based Charge per 1,000 Gallons of Water Used:
City of Eugene .................................................................................................. $3.529
MWMC ............................................................................................................. $3.525
Total flow-based charge per 1,000 gallons of water used ................................ $7.054
TYPICAL RESIDENTIAL BILLING: .....................................................................
(Per Account charge + 5 times the total flow-based charge)
$52.98
COMMERCIAL/INDUSTRIAL:
Per Account Fee, All Commercial/Industrial Classes:
City of Eugene .................................................................................................. No charge
MWMC ............................................................................................................. $17.71
Sanitary Sewer Flow-Base Charge Per 1,000 Gallons of Water Used by Customer
Class:
Low Strength Customer:
City of Eugene .................................................................................................. $3.529
MWMC ............................................................................................................. $4.739
Total flow-base charge per 1,000 gallons of water used .................................. $8.268
Medium Strength Customer:
City of Eugene .................................................................................................. $3.529
MWMC ............................................................................................................. $6.903
Total flow-base charge per 1,000 gallons of water used .................................. $10.432
Exhibit A
to Administrative Order No. 58-26-07-F
Page 2 of 2
RATE COMPONENT Rate
High Strength Customer:
City of Eugene .................................................................................................. $3.529
MWMC ............................................................................................................. $9.795
Total flow-base charge per 1,000 gallons of water used .................................. $13.324
Very High Strength Customer:
City of Eugene .................................................................................................. $3.529
MWMC ............................................................................................................. $12.695
Total flow-base charge per 1,000 gallons of water used .................................. $16.224
Super High Strength Customer:
City of Eugene .................................................................................................. $3.529
MWMC ............................................................................................................. $15.590
Total flow-base charge per 1,000 gallons of water used .................................. $19.119
SEPTAGE HAULERS/HAULED WASTE (NON-SEPTAGE):
City of Eugene .................................................................................................. No charge
MWMC Septage: flow rate/1,000 gallons ....................................................... $160.00
MWMC Hauled Waste (non-septage): flow rate/1,000
gallons ..............................................................................................................
$160.00
Exhibit B
to Administrative Order No. 58-26-07-F
Page 1 of 8
CITY MANAGER’S FINDINGS
Proposed Wastewater Fee Schedule Amendments
All properties connected to the public wastewater system pay wastewater fees. Eugene provides
local wastewater collection services, and the Metropolitan Wastewater Management Commission
(MWMC), a partnership of Lane County and the cities of Eugene and Springfield, operates the
regional wastewater collection and treatment facilities.
The City of Eugene is proposing to increase local wastewater user fees by 5%, effective July 1,
2026. This rate increase is necessary to balance revenues and expenditures and end the 6-year
forecast window with a balance available that is at the City’s two-month operating reserve target.
Inflationary pressures experienced by this industry are addressed within this rate increase.
Personnel expenses continue to rise as inflation increases wages and PERS retirement costs,
placing significant pressure on the budget. Inflation is also driving up the cost of goods and
services, further straining service delivery. Contractual services and repair work, in particular,
are increasing at rates above overall inflation.
This user fee increase also reflects the addition of a portion of a new strategic position within the
Public Works Department. Due to workload growth, employee turnover, increasing complexity
and regulatory requirements for road, stormwater, and wastewater infrastructure, 0.20 FTE for an
Assistant Director in the Maintenance Division is included in the rate structure. The remaining
portions of this FTE will be funded by the Road Fund and the Stormwater Fund.
Pursuant to Sections 6.411(1) and (2), the City Manager has conducted an investigation of the
revenue needs of the City in conducting wastewater operations and has examined the following
criteria in determining the proposed wastewater fees:
1) The amount charged for such service in the past.
Findings:
RATE COMPONENT
CURRENT
RATE
PROPOSED
RATE
RESIDENTIAL:
Per Account Fee:
City of Eugene …………………………………………………………………………………………….. No charge No charge
MWMC ………………………………………………………………………………………………………… $16.79 $17.71
Sanitary Sewer Flow-Based Charge per 1,000 Gallons of Water Used:
City of Eugene …………………………………………………………………………………………….. $3.361 $3.529
MWMC ………………………………………………………………………………………………………… $3.341 $3.525
Total flow-based charge per 1,000 gallons of water used…………………………….. $6.702 $7.054
Exhibit B
to Administrative Order No. 58-26-07-F
Page 2 of 8
TYPICAL RESIDENTIAL BILLING: ………………………………………………………………………….
(Per Account charge + 5 times the total flow-based charge)
$50.31 $52.98
COMMERCIAL/INDUSTRIAL:
Per Account Fee, All Commercial/Industrial Classes:
City of Eugene …………………………………………………………………………………………….. No charge No charge
MWMC ………………………………………………………………………………………………………… $16.79 $17.71
Sanitary Sewer Flow-Base Charge Per 1,000 Gallons of Water Used
by Customer Class:
Low Strength Customer:
City of Eugene …………………………………………………………………………………………….. $3.361 $3.529
MWMC ………………………………………………………………………………………………………… $4.492 $4.739
Total flow-base charge per 1,000 gallons of water used………………………….. $7.853 $8.268
Medium Strength Customer:
City of Eugene …………………………………………………………………………………………….. $3.361 $3.529
MWMC ………………………………………………………………………………………………………… $6.543 $6.903
Total flow-base charge per 1,000 gallons of water used………………………….. $9.904 $10.432
High Strength Customer:
City of Eugene …………………………………………………………………………………………….. $3.361 $3.529
MWMC ………………………………………………………………………………………………………… $9.284 $9.795
Total flow-base charge per 1,000 gallons of water used………………………….. $12.645 $13.324
Very High Strength Customer:
City of Eugene …………………………………………………………………………………………….. $3.361 $3.529
MWMC ………………………………………………………………………………………………………… $12.033 $12.695
Total flow-base charge per 1,000 gallons of water used………………………….. $15.394 $16.224
Super High Strength Customer:
City of Eugene …………………………………………………………………………………………….. $3.361 $3.529
MWMC ………………………………………………………………………………………………………… $14.777 $15.590
Total flow-base charge per 1,000 gallons of water used………………………….. $18.138 $19.119
SEPTAGE HAULERS/HAULED WASTE (NON-SEPTAGE):
City of Eugene …………………………………………………………………………………………….. No charge No charge
MWMC Septage: flow rate/1,000 gallons …………………………………………………… $152.00 $160.00
MWMC Hauled Waste (non-septage): flow rate/1,000 gallons ……………………. $152.00 $160.00
Exhibit B
to Administrative Order No. 58-26-07-F
Page 3 of 8
2) For regional wastewater treatment services, the recommendation, if any, of the
Metropolitan Wastewater Management Commission, or any successor agency.
Findings: MWMC approved a 5.5% increase in regional wastewater rates over the current
rate, and a 5.3% increase in the Septage Hauler/Hauled Waste fee over the current fee,
effective July 1, 2026. MWMC held a public hearing specific to the proposal on April 10,
2026.
3) Applicable federal or state regulations or conditions imposed as part of a federal or
state grant or financial assistance agreement.
Findings: The Oregon Department of Environmental Quality is charged with implementing
state and federal rules governing the operation of wastewater treatment plants. As such, the
DEQ has issued a National Pollutant Discharge Elimination System (NPDES) Permit
(number 102486) for the Eugene/Springfield Water Pollution Control Facility (i.e., the
regional treatment plant at 410 River Ave, Eugene). The permit describes conditions and
limitations to ensure public health and safety and protection of the environment. The FY27
budget for the regional wastewater program will provide funding for the City to carry out
operations and maintenance activities and services necessary under the NPDES permit.
4) The amounts charged or proposed to be charged by the City of Springfield and other
providers of wastewater services for comparable services.
Findings:
Exhibit B
to Administrative Order No. 58-26-07-F
Page 4 of 8
5) The revenue needed to pay for the direct and indirect expected costs of constructing,
operating, maintaining, and replacing local and regional sewerage facilities based on
the adopted budgets of the city of Eugene and the Metropolitan Wastewater
Management Commission or its successor, the debt obligations of the city or other
entities for construction of the facilities, adopted capital improvement plans of the
council, the expected need for financial reserves and contingencies, and other sources of
revenue.
For an explanation of regional wastewater fee increases, which are set by the Metropolitan
Wastewater Management Commission, please see the March 13, 2026 meeting for MWMC
at www.mwmcpartners.org/meetings/.
Findings:
6) Other relevant adopted policies of the council.
Findings: There are no other relevant policies adopted by the City Council that will impact
the FY27 proposed rates.
Exhibit B
to Administrative Order No. 58-26-07-F
Page 5 of 8
7) The terms of any applicable intergovernmental agreement relating to wastewater
services or regional wastewater treatment service.
Findings: The intergovernmental agreement with EWEB for utility service charge collection
services, updated November 1, 2025, includes an increase of $167,000 in local wastewater
related billing costs. This amount represents approximately 1.2% of the proposed wastewater
rate increase. The IGA that created and governs MWMC requires MWMC to recommend
regional wastewater fees to the City based on: (i) the rates and amounts that the MWMC
reasonably determines are necessary to meet Bond covenants, and to achieve and maintain an
unenhanced credit rating of A for the MWMC's Bonds from at least one nationally
recognized rating agency; and (ii) such additional rates and amounts that the MWMC
determines are appropriate to adequately fund the actions necessary to perform the MWMC's
functions under this Agreement. The proposed regional wastewater fees are those
recommended by MWMC in accordance with that IGA.
8) The obtaining of equity between different classes of customers so that one class of
customers does not pay more than its proportionate share of the expenses of providing
sewer service.
Findings: The wastewater fee schedule is a flow-based fee set up to charge customers whose
residence or business use more water, and thus requires more wastewater to be treated, to pay
a higher fee. There is one rate charged per thousand gallons of water used for residential
customers and five different categories of rates for commercial customers depending upon
the strength and characteristics of the wastewater discharged to the public sewer system.
9) In addition to the forgoing considerations, in determining the amounts or rates to be
charged for wastewater service, the city manager shall consider the value of the use and
occupancy of the city’s right-of-way by the city wastewater system.
Findings: The City of Eugene wastewater program is paying a similar charge for the use and
occupancy of the City of Eugene’s right-of-way system, when compared to other utilities in
the area.
Exhibit B
to Administrative Order No. 58-26-07-F
Page 6 of 8
Summary Record of Open Questions and Comments at Public Hearing
Thursday, May 14th, 2026 12:00 p.m.
Virtual Zoom Hearing
On the matter of receiving comment on proposed adjustments for
Stormwater or Wastewater user fees for bills issued on and after July 1, 2026
No participants provided comment in the matter of proposed stormwater and wastewater user fee
increases. Below is a summary of written questions or comments received, followed by the City
response.
In person testimony:
No testimony received
Emailed comments:
From: Alexander Chamberlin
Sent: Saturday, May 9, 2026 4:50 PM
To: Eugene PWA Utility Admin <UtilityAdmin@eugene-or.gov>
Subject: Help me understand wastewater fee schedules
So I've reviewed Admin-Order-58-26-07----Proposing-WW-User-Fee-Amendments--FY27
and I have questions I want to ask before I make public comment. I have three primary
questions.
First, how do you detect the "strength" of wastewater coming from a customer? What does the
strength of wastewater even mean? What would the strength of a toilet flush be?
Second, how do you decide how to allocate needed revenue between per account fee and per
gallon fee? Like the per account fee is $17.71 and flow fee is $7.054 per 1000 gal. Why this?
Why not $1 per account and $8 per 1000 gal or whatever the math works out to?
Third, if eugene collectively generates 5% less waste water (yay!) does the budget collapse (oh
no!)? Conversely if eugene generates 5% more waste water what do you do with the surplus?
thank you very much for your expertise and the work you do
First, how do you detect the "strength" of wastewater coming from a customer? What does
the strength of wastewater even mean? What would the strength of a toilet flush be?
The City uses combined Biochemical Oxygen Demand (BOD₅) and Total Suspended Solids
(TSS) concentrations (in mg/L) to classify wastewater strength into tiers for commercial
customers:
Exhibit B
to Administrative Order No. 58-26-07-F
Page 7 of 8
• Low Strength: up to 400 mg/L
• Medium Strength: up to 800 mg/L
• High Strength: up to 1,200 mg/L
• Very High Strength: up to 1,600 mg/L
• Super High Strength: above 1,600 mg/L
The City uses a two-step process to ensure each commercial or industrial customer is billed
accurately based on the actual strength of the wastewater they discharge.
These thresholds correspond to specific regional (MWMC) and local (City of Eugene) flow-
based fee rates per 1,000 gallons. The combined BOD₅ + TSS concentration determines the
strength category and affects the fee tier for commercial and industrial users. The City uses a
two-step process to ensure that each business is assigned the most accurate wastewater strength
category possible.
1. Initial Category Assignment
When a new business opens or an existing business changes its use, the City assigns an
initial wastewater strength category based on the System Development Methodology Plan.
This plan includes standard use-type classifications (such as restaurants, offices,
manufacturing, or food service) and assigns each type an expected wastewater strength based
on typical wastewater characteristics for similar operations. This approach allows the City to
make an initial, reasonable estimate of a business’s expected wastewater load.
2. Strength Verification Through Testing
If the assigned category does not appear to reflect the actual wastewater characteristics of a
business, the City can perform, the customer may request, wastewater sampling and
laboratory testing. These tests measure pollutant levels, such as Biochemical Oxygen
Demand (BOD₅) and Total Suspended Solids (TSS), which indicate the actual strength of the
wastewater being discharged.
If testing shows that the wastewater strength is higher or lower than the initial classification, the
City will adjust the strength category accordingly.
Higher numbers = “stronger” wastewater because it takes more treatment to clean.
For residential customers, wastewater strength is not individually measured; all residential
customers are billed using a standard residential strength value because their wastewater
characteristics are generally consistent across households.
What is the “strength” of a normal toilet flush?
A household toilet flush is considered typical domestic wastewater strength, which means:
• BOD₅: about 200–300 mg/L
• TSS: about 200–300 mg/L