Hillsboro water rates are going up again. The Hillsboro Herald, as your local news source for all things Hillsboro and beyond, has covered water rate increases over the last few years in a series of articles. You can catch up on all of those right here – Water Stories. Unfortunately, it is time for us to drop another one.
The City of Hillsboro has put a lot of time and energy into developing these proposed budgets and rates. You can read all about the process, the upcoming rate increases, and the methodology here. https://engage.hillsboro-oregon.gov/water-rates: The City has put forth the reasoning and purpose of these increases. Justifying cost increases year after year is hard to do, and it raises many questions. And let me tell you, people do not go to water rate hearings or utility commission meetings, let alone dig into volumes of data and ask hard questions. I know because I have been to a few of those meetings and looked around to see just myself and one other soul. And that soul is someone passionate about water rates, how they are structured and charged, and the drivers that make them grow up. The people of Hillsboro are very lucky to have Charolyn Concepcion among them.
She has been an active analyst, and her testimony meetings and communications have brought meaningful change and understanding to everyone on both sides. I checked in with her on this issue a few days ago to get her take and see her thoughts.
Here is a table from the Hillsboro Water report linked above showing our rate increases since 2011.
City of Hillsboro Water Rates
Charloyn Concepcion-
(The time period ) 2014-2024 saw a 100% increase in rates for Single-Family Residential. See Water Dept’s table: (note however this is IF they stay in the 1st of 3 tiers of increasing water usage rates). Their “Average” water bill using 8 ccf/month–increased from $25.60-$50.34.
Further Note, Single-family Residential had the lowest increases from 2019-2024, as the 2018 Water Study showed they were the only category overpaying.
Consider also: Since increases are based off an ever-increasing previous year’s rates—it snowballs. Therefore, this “lower” rate of increase now isn’t really lower. See This table, which also gives monthly amounts of increase—a comparable 6% increase years 2013-15 was around $1.50/month. This year, 5.7% is $2.83—so basically double the impact now (discovered this happens after you hit 100% of the increase).
So- we are up as residents 100% in the last 10 years.
People need to get involved – there are opportunities to do that.
Charolyn Concepcion-
Timeline for 2025 and 2026 Water Rate Increases: Public Input Opportunities (from Agenda)
Please Make Your Voice Heard—after 2022, the UC did respond to comments (see below)
“proposed rates for 2025 and 2026 to align with the City of Hillsboro’s (City) biennial budget process. The 2024 rate-setting calendar will include the following: (Note Monthly Utilities Commission meetings are open to the public, and attendees will have the opportunity for public comment).
August 19 to September 20: City staff will conduct rate-focused outreach during this public input period for both the 2025 and 2026 rate adjustment proposals. See City Newsletter, Nextdoor, City Water website…link for online/phone–public comments accepted
September 10 1:30 pm at Civic Center: The Utilities Commission (Regular Meeting) will receive a summary of early feedback from the public and have a second opportunity to discuss water rates at their monthly meeting. Comments can also be given here.
September 24: The Commission will receive public testimony at a Water Rate Public Hearing. I heard this will be an evening meeting.
October 8: After reviewing the public comments received, the Commission will consider taking action (vote) on the proposed Resolution on water rates for calendar years 2025 and 2026 and the updated Rate Study.
January 1, 2025 and 2026: If approved by the Commission, new water rates take effect.
GOOD NEWS REVEALED FROM THE MOST RECENT REPORTS-
Charolyn Concepcion:
Good News: due to impressive testimony at the 2022 Water Rate Hearings—Especially from members of the Western Farmworkers Association—Affordability has been looked at closely. Starting July of this year—assistance amounts have increased substantially, from $250 per year to $300-500. Now, it is dependent on family size, not bill amounts. Also, with improved guidelines for eligibility, many more families will qualify for this. Federal lobbying continues.
2. Good News: For single family residential low water users (ie small families such as retired households): recommended single family 2024 and 2025 rates are to hold the base rate stable and create a new tier, splitting the first tier in half. Tier 1 will have the lowest rates, and Tier 2 will be the next lowest. 3 and 4 will be quite a bit higher to make up the difference.
3: Good News: another goal of Hillsboro Water is “growth pays for growth”. These are SDC charges for new construction. They increased this year (no one opposed them at the UC meeting) and are quite high compared with other cities, but this prevents current residents from paying for new residential—and especially Industrial expansion of water lines. In this agenda many different areas of savings were identified, such as securing a very low Bond Interest rate to help pay for our secondary water system WWSS (Big Water Pipe) being built. If anyone is still unaware, this is the primary driver of our significant water rate increases year after year.
BAD NEWS REVEALED BY THE DATA
Charolyn Concepcion-
Bad News: Also in this agenda are two updated water pie charts: WATER RATE REVENUE and WATER VOLUME/USAGE by Customer Class:
Since 2022, resident Charolyn Concepcion has studied water documents (including the 253-page 2018 Water Rate Study) and presented many areas of data that certainly seem to show that Industry, particularly large industry, is not paying its fair share. It looks about the same.
As Presented in Hillsboro Hearld articles in the fall of 2022, showed:
The industry used 48% of water yet paid 39.7% (the next updated report showed 38.6%).
While single-family residential used 24.4% and paid 31.4%.
2022 Hillsboro Water rate summary chart developed by the Hillsboro Herald to show who is using our water and who is paying – Industry is NOT paying its fair share.
New Report Shows worse: Industry using 47.7% (is a little surprising with all the growth, although residential is exploding also, also this table added wholesale, unlike the previous ones)–paying 37.9%!! About 1% less each time.
Single Family Residential even with lower % rate increases: using slightly less–still overpaying the same: Using 23.7%–paying 31.4%.
From the new 2024 Reoprt completed by the City of Hillsboro – Industry in Hillsboro is driving usage and cost increases.
The new report shows things have gotten worse: Industry is using 47.7% of our water but only paying 37.9% of our water budget!!
Single Family Residential, even with lower % rate increases: using slightly less–still overpaying the same: Using 23.7%–paying 31.4%.
Hillsboro, Oregon – From the City of Hillsboro Report- who uses the most and who pays the most is shown.
Who Is Paying What for Water?
Let’s look at who is paying what for water. Water is not charged per gallon but rather per CCF. One hundred cubic feet (1 CCF) is equivalent to 748 gallons of water.
Here are some screenshots from the City of Hillsboro water rate table from 2024.
Big Industry is paying $3.96 cents per CCF.
Residential rates are between $5.5 and $7.5 per CCF.
There is nothing more to analyze. Those are the rates. Residential rates are 50 to 90 % higher per CCF of water used than big industrial.
Affordability and Water Assistance Program –
The 2023 Fall Survey showed that 13% of Hillsboro residents struggle to afford the water portion of their utility bill, equal to 3,250 households. That number is up from 10% in the 2018 Survey.
Through early June of FY 2023-24, the HUB Assistance Program has helped 550 unique customers with their water bills.
550 families were helped; a small percentage of the 3,250 citizen households needed help. The current program in place did not help enough people to help those citizens who face water shutoffs, which actually happens quite often.
The increase from 10-13% represents an increase of 750 households who need or qualify for help in just a couple of years.
Conclusion – Action Is Needed-
The Hillsboro Herald wants to thank Charolyn Concepcion – she has tirelessly reviewed hundreds of pages of reports, detailed tables and charts, and rooted out facts and figures that were not obvious or apparent even to the members of the commission or advisory groups. This is highly detailed stuff, and it will put anyone to sleep.
After reviewing all the data and listening to all the arguments, the Herald is comfortable telling all of you that the Industry, which is primarily Intel, pays a lot less per gallon than it should. We believe that the people of Hillsboro should not be charged anything more per gallon than the Industry and that Industry, which is the primary driver in our need for water and new systems, should pay for those new systems.
Please write into the City, attend the meetings, take the survey, and, damn it stand up! Industry is raking hundreds of millions in corporate revenues and profits out of our Hillsboro. Yes, they provide jobs. But dammit, it is not fair for those of us living here, no matter how long we have been here, to just sit back, smile, and take it up the tailpipe.
You want our amazing water? Great. You can have it at a PREMIUM per gallon over what our citizens pay and be happy to get it. Or maybe you would prefer to get water somewhere else? No? Ok- then do what is right and pay your fair share. This current system is not that.
There is an election coming up. In the coming weeks, we will ask each candidate what they would like to see happen and if they support our industries stepping on all of us as they gulp up nearly 50% of our water. Let’s see what they all have to say.
And this begs the question for those running, who have sat in power all these years. Why have you done nothing? Why do a citizen activist and a local news source, who you have labeled as a Blog, have to be the only ones who know this or care about it? That is on you- own it- react to it. This will be a flash point in the future and our people have had it. So, any comments you have are certainly welcome in the space below! Use it.
Dirk Knudsen is a lifetime Hillsboro resident. He and his wife, children, grandchildren, and the extended family have served the Community for over 55 years. Read More About Dirk right here - https://hillsboroherald.com/about-us/about-dirk-knudsen/
Charolyn Concepcion here: like a politician, I will say–I read this carefully for accuracy–and I approve this message! :-) Well written Dirk–I can only study and find details–I do not have the ability to pull so much information together. You always do a wonderful job on the visuals also–really helps to see it clearly.
When given all the facts, and in this case we had to make the charts, the truth is self evident. The people of Hillsboro have been fleeced and that will continue until they stand up!
So Intel built that large self contained treatment plant called WATR. It is an in house water treatment plant that is supposed to make it 100% self sufficient in treating it’s own water to drinking standards. I thought it was also supposed to deliver excess back into the grid, but I can’t confirm that. This could explain their reduced rates. However several large server farms have popped up. I wonder what their usage is?
They do recycle water. But they also dump millions of gallons of water into the sewer systems – pretty much unchecked. It leaves hot and causes a heat problem for water leaving the CWS Sewer plant as well. They use millions of gallons a day- I will be able to run those numbers soon.
I can speak to the recycling system, I was told by the water dept, as that was just starting after the 2018 water study, that was why Industry wasn’t dealt with in that (and had lower increases — not a whole explanation in my opinion, but I could see there were unknowns upcoming, water does need to do their best to keep revenue stable–which is reasoning behind some variances in charges between customer groups) until they saw what the impact was. For the 2022 water hearings we were given figures on Intel’s usage: bit higher in 2019 than 2018, decreased about 1 mgd in 2020 then right back up in 2021 (not confirmed, but I’m thinking may still be decreasing use– but with expansions using even more). Early this week I requested an update on that from the water department –still waiting. I have seen nothing about Intel releasing water, I am the person that studies all reports and tables. When you say servers do you mean data farms? In 2022 info was posted for water hearing (2021 data): 9 data farms then (also have been asking, twice now, what that number is now –certainly higher!)–Intel using 7.2mgd, the 9 data farms together: 171,000gal/d (believe that iis .171 mgd–correct me if I’m wrong).
Hillsboro (and Washington county) needs to keep voting for “down with the patriarchy” liberal sorority’s girls instead of common sense farmers and business owners. I’m sure if the voters double down on equity things will get better just like the Soviet Union, North Korea, Venezuela, and Cuba.
Send in a public comment–and perhaps also attend the public rate hearing meeting. 2 years ago a large amount of feedback led to the assistance program being greatly improved. A little more information: Currently we are waiting for the 2023 (now called 2024) water rate study (due out last fall–latest update “hopefully will be ready for the September Utility commission meeting)–done by an independent engineering company — whose stated goal is to ensure no category is subsidizing others (“each pays their fair share”). After seeing the pie charts in 2022–like the 2024 ones above–and represented in the comparison bar chart–it became evident that Industry was the only category underpaying, Residential overpaying quite a bit (which was also clearly stated/shown in the previous 2018 water rate study)–all the other categories were close to even. The 2024 rate study will give more info (100’s of pages long with much data, as well as some summary statements–have asked for more in this 2024 study). Likely will confirm what is shown in the 2024 pie charts above–less balance in the usage/revenue payments between for each category. Still looks to me that Industry (likely mostly large Industry/Intel–the study in 2018 separated out large industry — so should reflect this again) is significantly underpaying–I will certainly be speaking to this soon as I see the study and can confirm.
PS–There is no getting around significant increases. The over and above usual utility (for all types) increases for water is primarily due to building the secondary water source: WWSS–naturally Very Expensive. And in turn, the need for this has resulted from our leader’s focus on Rapidly (my complaint is way too rapidly) expanding Industrial growth (for a decade or so now)–which in turn spurs needed residential growth (as we all know, which we are not keeping up on–despite tremendous efforts). In Hillsboro’s website–a whole section is devoted to wooing Industry to move here, aptly titled “Choose Hillsboro”. Their statement on water needs is: “Hillsboro has plenty of water to meet current needs, and the City is in the process of taking additional steps to ensure water availability will not be a problem in the future. … Quantity, quality, and reliability are of critical importance, particularly to industrial users”. True–and as Dirk says above–fine but let Industry who is driving the need pay adequately for it.
There are a lot of questions candidates for Hillsboro city offices should be answering. Water rates have been steadily rising for quite some time. And I’m convinced the huge pipeline project currently snaking its way into town bears a major responsibility. Are citizens expected to subsidize huge waterhog industries? I think they are.
“We believe that the people of Hillsboro should not be charged anything more per gallon than the Industry”
Why would that be? It is more expensive to provide water to small residential users than to a large industrial user. Yes the cost to get the water to the treatment plant and treat it is the same per gallon but the transmission and distribution costs are MUCH higher for residential. It costs a lot more to run a network of small pipes to 10,000 homes using 8 ccf per month vs running a single large pipe carrying 80,000 ccf per month to a customer like Intel. That cost is doubled when you think of the sewer lines that bring the waste water back to the treatment plant.
Our residential systems not with standing news areas have been built and pair for over time. Reading meters is becoming or had become automated. Industry is the big driver on costs, especially the big water pipe project. Your statement is one that we have heard, and has some merit, yet no one has provided actual costs or proof of that. Over and above all of that is the idea that our industrial partners, who have come and taken up our lands, received hundreds of millions in tax abatements and benefits, should pay the same as the rest of us. Being an employer and being able to put in a big pipe versus smaller pipes while nice, is not a reason to pay 50 to 90 percent less than the people of Hillsboro. Our water is already cheap and the annual fees that Intel and companies like that would pay if charged the same is an indignificant amount to them when viewed through the lens of their overall revenues. I personally see no value in the argument that it costs less to deliver – that is a systems issue. Pay to play- pay what our peolpe pay. And if that means they believe they are paying more in some way then that is fine with me. They should.
Many residential areas and many commercial pipes are both already constructed and still being built out, it’s not like only industry is growing? Besides, maintenance and eventual replacement costs are ultimately a constant ongoing and often greater cost than initial installation. Turns out, harder to replace pipes under an existing street than before the street exists! I have no real opinion on wether industrial or residential customers “should” pay more or less than what it costs to deliver to them but if the goal is to charge exactly what it costs to serve them it would make perfect sense for the per-ccf cost to be an order of magnitude higher for small users. Perhaps showing a separate “your usage” and “your infrastructure” section on the bill would make this easier to grasp.
Somewhat — there are many factors, this is one — but their own 2018 study showed residential was the only category overpaying (which is why they received the lower percentage increases –IF you stay in tier one usage, not so for tiers 2 and especially 3). Updated revenue and usage pie charts show industry still underpaying–about the same or worse, residential not overpaying quite as much, but now other categories are.I have asked for a pie chart to include large industry/intel (now only all of industry)–which was a new category created in the 2018 rate study There is also the base/meter rate, which would be 25,050 for residential, only 91 for industry. Industry dies pay more but there was also a comparison sheet put out by water dept showed, industry also underpaying here.
Charolyn Concepcion here: like a politician, I will say–I read this carefully for accuracy–and I approve this message! :-) Well written Dirk–I can only study and find details–I do not have the ability to pull so much information together. You always do a wonderful job on the visuals also–really helps to see it clearly.
When given all the facts, and in this case we had to make the charts, the truth is self evident. The people of Hillsboro have been fleeced and that will continue until they stand up!
So Intel built that large self contained treatment plant called WATR. It is an in house water treatment plant that is supposed to make it 100% self sufficient in treating it’s own water to drinking standards. I thought it was also supposed to deliver excess back into the grid, but I can’t confirm that. This could explain their reduced rates. However several large server farms have popped up. I wonder what their usage is?
Josh –
They do recycle water. But they also dump millions of gallons of water into the sewer systems – pretty much unchecked. It leaves hot and causes a heat problem for water leaving the CWS Sewer plant as well. They use millions of gallons a day- I will be able to run those numbers soon.
I can speak to the recycling system, I was told by the water dept, as that was just starting after the 2018 water study, that was why Industry wasn’t dealt with in that (and had lower increases — not a whole explanation in my opinion, but I could see there were unknowns upcoming, water does need to do their best to keep revenue stable–which is reasoning behind some variances in charges between customer groups) until they saw what the impact was. For the 2022 water hearings we were given figures on Intel’s usage: bit higher in 2019 than 2018, decreased about 1 mgd in 2020 then right back up in 2021 (not confirmed, but I’m thinking may still be decreasing use– but with expansions using even more). Early this week I requested an update on that from the water department –still waiting. I have seen nothing about Intel releasing water, I am the person that studies all reports and tables. When you say servers do you mean data farms? In 2022 info was posted for water hearing (2021 data): 9 data farms then (also have been asking, twice now, what that number is now –certainly higher!)–Intel using 7.2mgd, the 9 data farms together: 171,000gal/d (believe that iis .171 mgd–correct me if I’m wrong).
Hillsboro (and Washington county) needs to keep voting for “down with the patriarchy” liberal sorority’s girls instead of common sense farmers and business owners. I’m sure if the voters double down on equity things will get better just like the Soviet Union, North Korea, Venezuela, and Cuba.
Thank you for this sadly, but insightful article. But what and can be done about it?
Send in a public comment–and perhaps also attend the public rate hearing meeting. 2 years ago a large amount of feedback led to the assistance program being greatly improved. A little more information: Currently we are waiting for the 2023 (now called 2024) water rate study (due out last fall–latest update “hopefully will be ready for the September Utility commission meeting)–done by an independent engineering company — whose stated goal is to ensure no category is subsidizing others (“each pays their fair share”). After seeing the pie charts in 2022–like the 2024 ones above–and represented in the comparison bar chart–it became evident that Industry was the only category underpaying, Residential overpaying quite a bit (which was also clearly stated/shown in the previous 2018 water rate study)–all the other categories were close to even. The 2024 rate study will give more info (100’s of pages long with much data, as well as some summary statements–have asked for more in this 2024 study). Likely will confirm what is shown in the 2024 pie charts above–less balance in the usage/revenue payments between for each category. Still looks to me that Industry (likely mostly large Industry/Intel–the study in 2018 separated out large industry — so should reflect this again) is significantly underpaying–I will certainly be speaking to this soon as I see the study and can confirm.
PS–There is no getting around significant increases. The over and above usual utility (for all types) increases for water is primarily due to building the secondary water source: WWSS–naturally Very Expensive. And in turn, the need for this has resulted from our leader’s focus on Rapidly (my complaint is way too rapidly) expanding Industrial growth (for a decade or so now)–which in turn spurs needed residential growth (as we all know, which we are not keeping up on–despite tremendous efforts). In Hillsboro’s website–a whole section is devoted to wooing Industry to move here, aptly titled “Choose Hillsboro”. Their statement on water needs is: “Hillsboro has plenty of water to meet current needs, and the City is in the process of taking additional steps to ensure water availability will not be a problem in the future. … Quantity, quality, and reliability are of critical importance, particularly to industrial users”. True–and as Dirk says above–fine but let Industry who is driving the need pay adequately for it.
There are a lot of questions candidates for Hillsboro city offices should be answering. Water rates have been steadily rising for quite some time. And I’m convinced the huge pipeline project currently snaking its way into town bears a major responsibility. Are citizens expected to subsidize huge waterhog industries? I think they are.
“We believe that the people of Hillsboro should not be charged anything more per gallon than the Industry”
Why would that be? It is more expensive to provide water to small residential users than to a large industrial user. Yes the cost to get the water to the treatment plant and treat it is the same per gallon but the transmission and distribution costs are MUCH higher for residential. It costs a lot more to run a network of small pipes to 10,000 homes using 8 ccf per month vs running a single large pipe carrying 80,000 ccf per month to a customer like Intel. That cost is doubled when you think of the sewer lines that bring the waste water back to the treatment plant.
Our residential systems not with standing news areas have been built and pair for over time. Reading meters is becoming or had become automated. Industry is the big driver on costs, especially the big water pipe project. Your statement is one that we have heard, and has some merit, yet no one has provided actual costs or proof of that. Over and above all of that is the idea that our industrial partners, who have come and taken up our lands, received hundreds of millions in tax abatements and benefits, should pay the same as the rest of us. Being an employer and being able to put in a big pipe versus smaller pipes while nice, is not a reason to pay 50 to 90 percent less than the people of Hillsboro. Our water is already cheap and the annual fees that Intel and companies like that would pay if charged the same is an indignificant amount to them when viewed through the lens of their overall revenues. I personally see no value in the argument that it costs less to deliver – that is a systems issue. Pay to play- pay what our peolpe pay. And if that means they believe they are paying more in some way then that is fine with me. They should.
Many residential areas and many commercial pipes are both already constructed and still being built out, it’s not like only industry is growing? Besides, maintenance and eventual replacement costs are ultimately a constant ongoing and often greater cost than initial installation. Turns out, harder to replace pipes under an existing street than before the street exists!
I have no real opinion on wether industrial or residential customers “should” pay more or less than what it costs to deliver to them but if the goal is to charge exactly what it costs to serve them it would make perfect sense for the per-ccf cost to be an order of magnitude higher for small users. Perhaps showing a separate “your usage” and “your infrastructure” section on the bill would make this easier to grasp.
Somewhat — there are many factors, this is one — but their own 2018 study showed residential was the only category overpaying (which is why they received the lower percentage increases –IF you stay in tier one usage, not so for tiers 2 and especially 3). Updated revenue and usage pie charts show industry still underpaying–about the same or worse, residential not overpaying quite as much, but now other categories are.I have asked for a pie chart to include large industry/intel (now only all of industry)–which was a new category created in the 2018 rate study There is also the base/meter rate, which would be 25,050 for residential, only 91 for industry. Industry dies pay more but there was also a comparison sheet put out by water dept showed, industry also underpaying here.
We have needed this info for so long. Thank you! Banks is going to suffer the same or worse. We are adding 1,100 houses over next 5-10 years.
Ayla