The Salem City Council in November will vote on whether to charge Salem homeowners about $5 more per month for water and sewage service.
If councilors approve the 4.5% rate increase, it would take effect in January. Another 4.5% increase is proposed for January 2026. The funds would cover mostly rising day-to-day operating costs of Salem’s water, stormwater and sewage systems.
The city mailed notice to ratepayers last week.
How to weigh in on utility rate increases
The Salem City Council will hold a public hearing on the proposed rate increases on Tuesday, Nov. 12, at 6 p.m. in the council chambers at City Hall, 555 Liberty St. S.E.
To comment remotely, sign up on the city website between 8 a.m. and 4 p.m. on the day of the hearing. The meeting will be livestreamed on YouTube in English and Spanish.
For written comments, email [email protected] before 5 p.m. on the day of the hearing, or submit on paper to the city recorder’s office at the Civic Center, 555 Liberty St. S.E., Room 225. Include a statement indicating the comment is for the public record.
The monthly cost of city utilities for a typical home would rise from about $123 to about $128, according to the city’s utility calculator.
Those figures include additional fees the city charges on utility bills. The city operations fee, a monthly bill fee that funds general city operations, will rise in 2025 from $15.33 per month to $15.88 per month for residential customers. Streetlight and backflow fees will stay the same for 2025.
Commercial, industrial and multi-family customers would also see a rate increase of 4.5%.
If approved, the increased utility rates will generate about $4.5 to $5 million more next year for the city’s utility fund, said city spokesman Trevor Smith.
The fund’s budget is $150 million this year, up from about $139 million last year, according to the city’s adopted budget.
Most of that money is spent on day-to-day operations, including repair and maintenance, while about $30 million is earmarked for capital improvement projects, Smith said.
Increased utility costs this year include about $3 million more in wages and benefits, including the addition of three employees for a sanitary sewer dig crew to address a growing need for sewer repairs, according to the budget. Materials costs are also rising.
Ratepayers can calculate how much they’ll pay on bills using the city’s utility calculator, emailing [email protected] or calling 503-588-6211.The city has utility bill assistance available, including monthly discounts based on income, as well as emergency assistance for past-due balances up to $500 per calendar year. Learn more about the programs and how to apply here or by calling 503-588-6099.
This article was updated to factor in the cost of additional fees on city utility bills.
Contact reporter Rachel Alexander: [email protected] or 503-575-1241.
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Rachel Alexander is Salem Reporter’s managing editor. She joined Salem Reporter when it was founded in 2018 and covers city news, education, nonprofits and a little bit of everything else. She’s been a journalist in Oregon and Washington for a decade. Outside of work, she’s a skater and board member with Salem’s Cherry City Roller Derby and can often be found with her nose buried in a book.