Hillsboro water customers could see their monthly bills rise by about $2.24 starting Jan. 1, 2027, under a proposed 4% annual rate increase that the Utilities Commission reviewed for the first time Tuesday, Aug. 11.
Water Director Niki Iverson and Water Business Administration and Operations Manager Lee Lindsey presented the draft proposal at the commission's regular meeting at Hillsboro Civic Center. The presentation was informational, with a formal decision scheduled for Oct. 13.
No vote was taken.
The 4% overall adjustment for 2027 and 2028 follows steeper increases of roughly 6.5% in each of the past two years. For a typical single-family home using about 6,000 gallons per month, the 2027 increase would add $2.24 to the monthly bill. Apartment residents in a typical 25-unit complex would see about $1.78 more per month.
Staff plan to bring three rate options to the commission's Oct. 13 vote and tentatively recommend "Option 2," though the specific figures for that option were presented in tables not yet available in text form. The fire protection rate would rise 6.5% annually under all scenarios, reflecting higher costs identified in the department's cost-of-service analysis.
How to weigh in
A 30-day public comment period opens Aug. 18 and runs through Sept. 18. Residents can email [email protected] or call 503-615-6702. A public hearing is set for Sept. 23, followed by the commission's action vote on Oct. 13. If approved, new rates take effect Jan. 1, 2027, with a second-year adjustment on Jan. 1, 2028.
Rate structure shift
The staff report notes that fixed charges now make up 39% of a typical water bill, down from 50.6% in 2018. That shift means more of the bill is tied to actual usage, giving customers more control through conservation.
The department also highlighted a $251 million federal WIFIA loan secured at a 1.36% fixed rate over 35 years. The EPA estimated that deal is saving Hillsboro Water about $175 million in borrowing costs compared to conventional debt, helping hold down the size of future rate increases.
At a May 19 City Council work session on the Willamette Water Supply System, Lindsey said Hillsboro's typical residential bill "remains mid-range compared to neighboring utilities."
Rockfall project wraps up under budget
Commissioners also received a project update on the Slow Sand Filter Plant Rockfall Mitigation Project, prompted by a February 2025 rockfall that damaged the city's intake facility along the Tualatin River. Rockstars Slope Stabilization LLC completed the work in about seven weeks, finishing in early July. The scope included 9,375 square feet of pinned mesh and 1,010 linear feet of rock dowels along the slope above the intake. The final cost came in at $351,758, roughly $45,000 under the $396,449 contract ceiling.
The commission's next regular meeting is Sept. 15 at 1:30 p.m. at Hillsboro Civic Center, 150 E. Main St.
