2025-2027 Drinking Water Rate Process

Water rates are carefully set to align with the budget and financial plan approved by the TVWD Board of Commissioners. This process is designed to be transparent and accountable, with significant public oversight.

The TVWD Board of Commissioners adopted the 2025-2027 Financial Plan in May 2025. The Financial Plan identified the District’s capital and operating expenses for the next two years.

Every two years, in the spring, the Board of Commissioners works closely with a 10-member Citizen's Budget Committee. Together, they thoroughly review and approve the budget for capital projects (like infrastructure improvements) and the day-to-day operations of the water system. TVWD’s Board of Commissioners adopted the 2025-2027 Budget in June 2025.

TVWD proposed a phased water rate increase:

• The initial increase of $3.01 per month for a typical single-family residence took effect on November 1, 2025. 

• The second increase will take effect on November 1, 2026, and be an additional $3.11 per month for a typical single-family residence. 

The typical single-family residence has a 5/8-inch water meter and uses 5,236 gallons of water, or 7 CCF (hundred cubic feet) per month. Individual water bills will vary based on meter size and individual usage.

*Note: One CCF equals 100 cubic feet of water, or 748 gallons. 

*Note: One CCF equals 100 cubic feet of water, or 748 gallons. 

Water rates are essential to fund current improvement projects throughout TVWD’s service area. These investments will protect your water system for future generations:

• Improve the ability of your water system to withstand major earthquakes and other emergencies.  
• Replace aging water pipes, reservoirs, and pump stations.
• Interest and loan payments on money borrowed for the construction of the Willamette Water Supply System, the partnership between TVWD and the cities of Hillsboro and Beaverton to provide an additional, seismically resilient water supply source.

Staff is working to limit rate increases, control costs, and reduce the impact of inflation and overall budget needs by:

• Actively seeking state and federal assistance to help fund capital improvement projects.
• Coordinating and combining purchasing and construction with other jurisdictions for cost efficiency.
• Aggressive competitive bidding processes.
• Analyzing opportunities to delay or defer projects where possible.
• Using long-term debt  through tools like the Federal Water Infrastructure Finance and Innovation Act to secure low-interest loans as well as bond financing. 

TVWD recognizes that customers may experience financial hardships that limit the ability to pay a utility bill. TVWD has systems to help customers in a time of need:

• A Customer Assistance Program provides eligible customers a 20% discount on the drinking water portion (both fixed and usage charges) of their water bill.
• A Customer Emergency Assistance Program provides eligible customers with a one-time per year credit toward their water bill balance.
• Extended payment arrangements provide you with more time to pay. Extended payment arrangements can be requested via the new Customer Service Portal or by phoning customer service.

More information on both programs can be found at Bill Assistance Programs or contact Customer Service at 503-848-3000 and a TVWD representative can assist you.

TVWD collects system development charges (SDCs), one-time fees paid by any new development, to help fund the construction or expansion of necessary infrastructure, like larger water mains, relocation of existing water system components to avoid conflict with development, adding fire hydrants for protection, and total system capacity to supply water to the growing community. These charges take the burden off existing customers and help keep water rates more affordable.

Water rates are based on a fixed monthly charge and a volume charge based on how much water a customer uses. The fixed monthly change is based on the meter size, which determines the amount of water that can flow to your home or business: the larger the meter, the greater the flow. The volume charge is based on the amount of water consumed.

Customers who use water in excess of peak water volumes are charged a higher volume charge for the water that exceeds the peaking factor (the peak water use divided by the average daily water use). The reason this additional water costs more is that the water system has to be sized to deliver the higher volumes even if that higher amount is only used once in a while. Having a water rate structure that is broken down by blocks, or amounts of water that people typically use, recovers the costs for oversized infrastructure from only those customers that use it.

In addition to paying their fair share of water usage, new homes and businesses must also pay a system development charge (SDC) to connect to the water system. A typical home within a subdivision would pay more than $9,500, per home, to connect to the water system at the time the home is constructed. A business or large meter customer pays SDCs based on their estimated water use. After the service is in operation, TVWD verifies the customer's actual use. In cases where a commercial customer is using more water capacity than they paid for when the SDC was paid, an additional bill for the actual water capacity in use is collected.

TVWD receives revenue from a variety of sources:

• Customer water rates, based on fixed and volume charges.
• System development charges paid by new development.
• Payments from partners for their share of capital project and operation costs, such as for the Willamette Water Supply Program.
• State and federal loans such as the federal Water Infrastructure Finance and Innovation Act (WIFIA) loan.
• Revenue bonds.
• Reserves and grants, including interest income.
• Other revenue such as meter and service revenue, dispatch fees, backflow program reimbursement, contract reimbursement and other miscellaneous incomes.

Everybody can make a difference by using water more efficiently without much effort or lifestyle change. With a leak or wasted water, you’re paying for something that you’re not using. Small water use changes in the kitchen, laundry room and bathroom can reduce how much water you use every day.

You can help reduce water use and still have beautiful, healthy landscapes with outside landscaping and irrigation strategies. While it may not seem like much, it all adds up. Learn specific strategies to help conserve water on our conservation page.