Customer Survey

How much will Gladstone utility customers pay next year? The answer is more. It's not just the water-or sewer-or stormwater rate – all three utility rates are expected to rise.

Here’s why rates are expected to increase. For many years Gladstone invested little or nothing in maintaining, updating or replacing infrastructure. Small rate increases or no increases in those years meant Gladstone’s rates didn’t even keep up with inflation. That led to serious deficiencies.

The City Council is asking customers for advice to help shape the City’s future rate increases. Please take a moment to complete this survey. Which option do you prefer?

Option A – Mandated Minimum
Gladstone is operating under a compliance agreement with federal/state regulators after repeat violations for unpermitted discharges to streams (sewage overflows into the Clackamas River) due to our aging infrastructure. This option increases rates just enough to provide the minimum amount needed to stay in compliance. It produces the smallest annual increases in the early years – but does not support infrastructure replacement, the long-term solution for fixing Gladstone’s problems.

Current Monthly Rates		Year One	Year Two	Year Three
Water	$22.61	+11.3%	+11.7%	*All utilities: inflationary increases only (2% to 5% per year)
Sewer	$35.44	+11.3%	+11.7%
Stormwater	$10.00	+11.3%	+11.7%
Total	68.05	$75.73	$84.60

Assures regulatory compliance
Failing systems not replaced
Lowest rates in early years

Option B – In-the-Middle
In the second option, the first-year and second-year rate increases would be more than the minimum option – 25.9% vs. 11.3%. This approach would start us down the path of slowly fixing our failing systems over several generations, allowing the City to gradually replace infrastructure over the next 100 years.

Current Rates	Year One	Year Two	Year Three
-	+25.9%	+26.0	*Inflationary increases only (2% to 5% per year)
$68.05	$85.67	$107.95	*Inflationary increases only (2% to 5% per year)

Assures regulatory compliance
Begins long-term replacement of failing systems (takes 100 years to catch up)
Higher rates in early years

Option C – Immediate Reinvestment
This option would allow Gladstone to make immediate investments to fix our failing infrastructure. It requires a steeper increase in the first year (95.7%) vs. an 11.3% increase for Option A or 25.9% increase for Option B. This option would raise enough revenue to support infrastructure replacement over the next 20 to 30 years – a long-term solution for fixing our problems.

Current Rates	Year One	Year Two	Year Three
-	+95.7%	+18.2%	*Inflationary increases only (2% to 5% per year)
$68.05	$133.16	$157.43	*Inflationary increases only (2% to 5% per year)

Assures regulatory compliance
Immediate steps to replace failing systems (20-30 years to catch up)
Highest rates in years

1.Which option do you prefer?

Option A - Mandated Minimum

Option B - In-the-Middle

Option C - Immediate Reinvestment

2.Reasons for your preference:

3.Comments or questions?