Hillsboro residents could see their monthly water bill rise about $2.25 to $2.55 starting in January. The Utilities Commission will choose among three rate proposals after a public hearing Monday, Sept. 28.

The city announced Wednesday, Sept. 16 that it moved the hearing to avoid a scheduling conflict at the Hillsboro Civic Center, 150 E. Main St. The hearing begins at 6 p.m.

Residents who cannot attend in person can submit feedback through the city's online portal. The online comment period closes Friday, Sept. 18.

All three options under consideration would raise residential rates by 4% or 4.5% in both 2027 and 2028. The differences center on how much industrial users, including data centers, would pay.

Option 1 calls for a 4% increase for both residential and industrial customers, matching the 2024 Rate Study recommendation.

Option 2 keeps the residential increase at 4% but raises the industrial rate to 6.5% to help fund the Willamette Water Supply System (WWSS) Industrial Pipeline Project. Option 3 bumps residential rates to 4.5% and industrial rates to 7%, also funding the pipeline project while aiming to reduce future rate increases.

For a typical household using 6,000 gallons a month, Options 1 or 2 would add $2.24 to the monthly water bill on Jan. 1, 2027, bringing it from $56.22 to $58.46. Option 3 would add $2.53, raising the bill to $58.75.

In 2028, a second round of increases would take effect Jan. 1. Options 1 or 2 would add another $2.35, and Option 3 would add $2.64, according to the city's Engage Hillsboro page.

About 91% of Hillsboro Water's customers are residential. Roughly 80% of those households use 6,000 gallons or less each month.

Options 2 and 3 exceed the 2024 Rate Study's recommendation because of higher-than-expected inflation on items like fuel costs and the deferred WWSS Industrial Pipeline Project, which is scheduled to resume at an estimated city share of $60 million to $75 million.

Water Business Operations Manager Lee Lindsay told the City Council at a May 19 work session that Hillsboro's typical residential bill remains mid-range compared to neighboring utilities. Lindsay also explained that the city uses a cost-of-service model, assigning costs to each customer class based on actual system use.

The Utilities Commission, not the City Council, sets water rates. The commission will review all public feedback before making a final decision.