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Public Hearing: Proposed 2020 Water System Development Charges (SDC) & Amended Methodology

  • Date: 12/10/2019 1:30 pm - 3:30 pm  
  • Location: Hillsboro Civic Center, Conference Room 207
    150 East Main Street
    Hillsboro, Oregon 97123
  • Introduction: Hillsboro Water collects Water SDCs to ensure new growth pays their equable share to fund water system expansions.
Growth in our community creates additional demands on our water system. The City of Hillsboro Water Department collects Water System Development Charges (SDCs) to ensure new growth pays their equable share to fund water system expansions.

Proposed Water SDC Adjustment
The Hillsboro Water Department is proposing a 4.4% Water SDC increase in 2020 for City of Hillsboro in-town retail customers (or those located west of Cornelius Pass Road and south of Highway 26), and updated Water SDC methodology with an updated Capital Improvement Plan (CIP).

Rate reductions are proposed for 2020 SDC rates for the City of Hillsboro’s upper-system (or those along Hillsboro’s original water service line) and for wholesale customers (the cities of Cornelius and Gaston and the L.A. Water Cooperative) based on the updated Water SDC Methodology and updated CIP. 

The current and 2020 proposed Water SDC rates are provided in the table below. 

Current and Proposed Water SDCs

Water Meter Size

City of Hillsboro
In-Town
Retail Customers

City of Hillsboro Upper System
Retail Customers

City of Cornelius – Wholesale Customer*

City of Gaston & LA Water Co-Op – Wholesale Customer*

Current

Proposed

Current

Proposed

Current

Proposed

Current

Proposed

5/8 inch by 3/4 inch

$10,300

$10,750

$11,660

$10,418

$6,530

$6,283

$7,997

$6,939

3/4 inch

$15,450

$16,125

$17,490

$15,627

N/A

$9,425

N/A

$10,408

1 inch

$25,750

$26,875

$29,150

$26,045

$16,325

$15,708

$19,993

$17,347

1-1/2 inch

$51,500

$53,749

$58,300

$52,089

$32,650

$31,415

$39,985

$34,694

2 inch

$82,400

$85,999

$93,280

$83,343

$52,240

$50,264

$63,976

$55,510

3 inch and larger

Water SDCs are based on estimated average day and maximum day demands expressed in 5/8 inch by 3/4 inch water meter equivalents

*These are the wholesale portion of the SDCs.  The respective retail SDCs will be higher. 

The proposed SDC adjustments will ensure new connections to the water system pay their equitable share to fund water system expansions. Revenue from Water SDCs is used only to fund capital projects that: 

  • Expand Hillsboro’s current drinking water system to serve new customers
  • Construct new water infrastructure to meet future demand needs
  • Reimburse the City for already-built water systems facilities

Water SDCs are set by the City of Hillsboro Utilities Commission, and updated on a regular basis following the requirements of Oregon law.
If approved by the City of Hillsboro Utilities Commission, the proposed SDC rates will go into effect on April 1, 2020. 

Proposed Amendments to the Current Methodology
The current methodology — established in 2014 – was used to calculate the maximum allowable Water SDC amount from 2014 to 2019. It was previously based on the adopted 2013 Water Master plan’s projected capital improvement expenditures for expansion of the Joint Water Commission Water Treatment Plant and for development of the Willamette Water Supply System (WWSS).  

The revised methodology will reflect the new projected capital improvement expenditures adopted in the 2019 Water Master Plan, and set the maximum allowable Water SDC amount for 2020 to 2025.  Below are links to the Water SDC Report and the proposed Resolution:

The proposed Water SDC adjustment and revised methodology will also be distributed to the media, posted online at the links above, and available for inspection from 8 am to 5 pm weekdays, excluding holidays at the following locations: 

  • Hillsboro Water Department: 150 E Main Street, Third Floor, Hillsboro, OR 97123
  • Shute Park Library: 775 SE 10th Ave, Hillsboro, OR 97123
  • Brookwood Library: 2850 NE Brookwood Parkway, Hillsboro, OR 97124

Public Input
From October 9 to December 2, 2019, members of the public are invited to provide input on the proposed 2020 Water SDCs and updated methodology in the following ways: 

  • Written Statement: Hillsboro Water Department, 150 East Main Street, Third Floor, Hillsboro, Oregon 97123
  • Emailed Statement
  • In Person: Hillsboro Water Department, 150 East Main Street, Third Floor, Hillsboro, Oregon 97123
All feedback will be provided to the Hillsboro Utilities Commission before the December 10, 2019, Water SDCs Public Hearing.

Public Hearing

Prior to adopting the 2020 Water SDCs or updating the methodology, the Utilities Commission will hold a Public Hearing at 1:30 pm, on Tuesday, December 10, 2019, in Conference Room 207 of the Hillsboro Civic Center, 150 E Main Street, Hillsboro.

At the hearing, the Commission will: 
  • Listen to a staff presentation.
  • Receive and consider public input.
  • Review the completed 2019 Water SDCs Update Study, revised methodology, Capital Improvement Plan (CIP), and SDCs adjustment proposal.
  • Take action on the proposed SDCs and new methodology.

All interested persons are invited to attend this public hearing, and will be given an opportunity to testify.

Access additional Water SDC information.

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