Utility Rates

General Information

The City operates its three utilities just like a business. That means the Water, Wastewater, and Storm Water utilities must generate enough revenue through user fees to cover all the costs of operating the "business". In addition to staff time, equipment maintenance, and materials and supplies needed to provide the direct services of each utility, other costs, such as debt service payments and funding for capital improvements, must also be recovered through the rates. Utility funds are not supported by property taxes; revenue is generated from user fees.

Each year the rate schedule is reviewed to determine if adjustments are needed to maintain the utility fund’s viability. Costs in the utility fields historically increase at greater than inflationary rates. In addition, all three utilities are responding to evolving federal and state regulations, and to the needs of an expanding infrastructure system due to growth in the community.

The City Council adopted a strategy in 1995 to combine the three utilities when reviewing increase proposals. Most recently, in December 2016, the City Council updated the associated Financial Policy to require Council to balance the need for sound management of the City’s infrastructure with the burden utility fees can place on the community.

Council Policy

CP10.02 Revenue Policies 
UTILITY FEES (WATER, WASTEWATER, STORM WATER) 
A. Utility Fee Basis -- Utility user charges for each of the three City utilities will be 
based on the total cost of providing the service (i.e., set to fully support the total 
direct, indirect, and capital costs) and are established so that the operating 
revenues of each utility are at least equal to its operating expenditures, reserves, 
debt coverage and annual debt service obligations, and planned replacement of 
the utility's facilities. 

B. Annual Rate Review -- Staff shall conduct an annual comprehensive rate review 
each fall for the Water, Wastewater and Storm Water funds for Council review 
and adoption. Rate increases will be targeted for implementation in February. 
Council will balance the need for sound management of the City’s infrastructure 
with the burden utility fees can place on the community. 

C. Rate Adoption -- Utility rates will be adopted by resolution. 

D. Franchise Fees -- The City’s Water, Wastewater, and Storm Water utilities will 
pay a franchise fee to the City’s General Fund to compensate for the use of the 
public right-of-way. The franchise fee will be equal to 5% of the utility’s gross 
monthly billed revenue.

Rate Review Process

The Public Works Department takes the lead for the organization in the rate review process. This is because 90% of the activity in the utility funds is managed by Public Works. In September, we review and update the financial plans for the department, including those for the utility funds. This provides a blueprint for any additions or changes to basic services needed in the upcoming years to meet the system demands. Projects resulting from this review or from the update to the Capital Improvement Program are prioritized and scheduled for an appropriate year. Working with the Finance Department, we identify fluctuations to non-operating costs, like debt service or equipment reserves.

The financial plans are an instrument to test "what if" scenarios, adjusting expenditures and/or revenues to maintain the balance between rates and expected service levels and ensure the fund’s viability through the planning window. Staff-recommended utility rates are developed from this review.

Next, we ask local communities of a similar size for their utility rates to test the proposed Corvallis average monthly residential utility bill against other municipalities. This information, along with a history of rates in Corvallis for the last ten years, is provided to the City Council to aid them in their review.

In December, the utility rate adjustment discussion is scheduled for a meeting of the City Council. Public input is solicited through an ad in the local paper and the City’s government access television station. A copy of the staff report and background material is put on file at the Public Library and City Hall for community members to review.

An opportunity for public comment is available at a public hearing before the full City Council. If, after their review of the issue, the Council approves the staff recommendation, they pass a resolution changing the utility rates effective February 1st. A copy of the most recent staff report supporting the rate increases may be downloaded from this web site.

Utility Rates -- Effective February 1, 2024

Rates for Single-Family Customers

* hcf = 1 unit = 100 cubic feet = 748 gallons.
** Wastewater rates are based upon water consumption. Summer wastewater rates are effective May 1 through November 30. Wastewater bills are based on the previous winter month's average water consumption or upon actual consumption, whichever is less.
*** ESU = Equivalent Surface Unit = 1 ESU = 2,750 square feet

1st Level, 2nd Level, 3rd Level – Consumption rates are arranged into levels that correspond with areas served that require secondary pumping to provide for adequate pressure in accordance with State and federal regulations.  Level 1, the lowest elevation requires no additional pumping to provide service; Level 2 requires some additional pumping; Level 3, the higher elevation area in Corvallis, requires the most additional pumping.  Secondary pumping involves additional infrastructure in the form of pump stations, water storage facilities and associated piping, and creates increased electricity expense.

Rates for Multi-Family Customers

* hcf = 1 unit = 100 cubic feet = 748 gallons.
** Wastewater rates are based upon water consumption. Summer wastewater rates are effective May 1 through November 30. Wastewater bills are based on the previous winter month's average water consumption or upon actual consumption, whichever is less.
*** ESU = Equivalent Surface Unit = 1 ESU = 2,750 square feet

Rates for Group Residential/Fraternity/Sorority Customers

(D=Domestic; M=Medium; H=High; VH=Very High)

* hcf = 1 unit = 100 cubic feet = 748 gallons.
** Wastewater rates are based upon water consumption. Summer wastewater rates are effective May 1 through November 30. Wastewater bills are based on the previous winter month's average water consumption or upon actual consumption, whichever is less.
*** ESU = Equivalent Surface Unit = 1 ESU = 2,750 square feet

Rates for Commercial and All Other Customers

(D=Domestic; M=Medium; H=High; VH=Very High)

* hcf = 1 unit = 100 cubic feet = 748 gallons.
** Wastewater rates are based upon actual water consumption throughout the year and the strength class of the wastewater discharge.
*** ESU = Equivalent Surface Unit = 1 ESU = 2,750 square feet

Rates for Irrigation Meters

* hcf = 1 unit = 100 cubic feet = 748 gallons.Rates for Water Service Outside the City Limits

Rates for water service rendered outside the City shall be double the rates provided for service inside the City

Rates for Fire Service

The following are standby (minimum) charges for automatic fire service. Charges are based on wet or dry sprinkling systems without hose or other connections; combined systems will pay the regular service meter minimums and the regular meter rates:

The rate for water service delivered through detector meters for fire protection shall be the rates as determined from time to time by motion of City Council and are not covered by the foregoing rate schedules. For more information, call 541-766-6949.

Utility Customers with No City Water Meter

Single-family property that does not have utility-provided water service and therefore has no water meter, but that has connection to the utility's wastewater service, shall pay $44.33 per month, plus the applicable storm water and transportation maintenance fees.

Multi-family un-metered rates shall be $44.33 per month for the first residential unit and $21.66 for each additional living unit above one, plus the applicable storm water and transportation maintenance fees.

Storm Water Rates

* ESU = Equivalent Surface Unit = 1 ESU = 2,750 square feet

Additional Charges

For More Information

For questions regarding your bill or to start utility service, call Utility Billing at 541-766-6949.

For questions regarding the rate review process, call the Public Works Department at 541-766-6916.