End Developer Subsidy by Portland Sewer Ratepayers
Posted on April 11, 2016 by Janice Thompson
Tags, Water/Wastewater
At the tail end of last year’s City of Portland budget development process, we reported on a major victory: the end of a developer subsidy to ensure developers were paying their fair share of sewer system development. This victory reduced the proposed residential rate increase, leaving more money in customers’ pockets, but the work wasn’t done yet. The budget development process for 2016 began last fall and several of CUB’s initial recommendations, particularly outreach about the option of requesting monthly billing, are in the current requested budgets of the Water Bureau and Bureau of Environmental Services (BES).
But a priority recommendation to end a second BES ratepayer subsidy for costs that should be covered by developers has stalled so we need your help.
Problem: BES charges developers fees to review building and land use plans for compliance with environmental standards. But these fees don’t cover the actual cost to BES and ratepayers make up the difference. For example, during the last fiscal year the cost recovery rate covered less than 50 percent of BES costs. Who made up the difference? Ratepayers like you and me. Not boosting this cost recovery rate last year meant $1.28 million in lost revenue to BES. This is money that should stay in ratepayer pockets and is an inappropriate subsidy to developers.
Solution: CUB is continuing to push for improved cost recovery of these BES fees and urges the City Council to end this subsidy paid for by ratepayers.
We need you: CUB has been at the budget work session and community budget forums pressing on this recommendation. But there seems to be City Hall resistance and we need your help.
The key people to contact urging support of CUB’s recommendation are Mayor Charlie Hales and Commissioner-in-Charge of BES, Nick Fish. Tell Mayor Hales and Commissioner Fish to close the cost recovery gap in the fees BES is allowed to charge developers for their review of land use and building plans to make sure they meet environmental standards. Ratepayers should not be subsidizing developers.
• Mayor Hales at .(JavaScript must be enabled to view this email address) or (503) 823-4120
• Commissioner Nick Fish at .(JavaScript must be enabled to view this email address) or (503) 823-3589
Please feel free to contact with questions or other suggestions at (503) 227-1984 x24 or .(JavaScript must be enabled to view this email address).
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12/27/16 | 0 Comments | End Developer Subsidy by Portland Sewer Ratepayers