PORTLAND -- Controversy over how utility rates are set in Portland could soon lead to a system overhaul.
Portland City Commissioner Dan Saltzman -who oversees Sewer services- says it may be more appropriate for an independent commission to set those water and sewer rates.
Due to federal mandates and other forced circumstances, sewer bills, in particular, are some of the highest in the country and water rates are climbing and climbing in Portland.
Saltzman says it's time to consider this idea, especially given a recent report from city auditors which criticizes the spending of utility revenues on non-utility purposes.
"All of these projects may have terrific public benefit. Our concern is that if they didn't go through the full process there may be less of a link to providing rate payer services" as required by state law, says Drummond Kahn, the Director of Audit Services in Portland.
For example, Kahn says Saltzman's Sewer bureau has seen a tenfold increase in potentially non-sewer-related planning and parks spending. The Water Bureau, he says, spent hundreds of thousand of dollars renovating a house in Northeast Portland to help demonstrate water conservation to residents.
The Water Bureau also spent a about $1.5 million rehabilitating an historic waterfront building to headquarter the financially troubled Rose Festival.
"I think that's an innovative, good way to use existing resources," said Portland City Commissioner Randy Leonard who oversees water services. Leonard says he is proud of his Bureau's projects and believes Saltzman's want to create an independent rate-setting body will add unneeded bureaucracy.
"He may need some structure to insulate him from being able to vote for things like that," said Leonard.
"That's an issue that he has. That's not one that I have." Mayor Sam Adams says he pushed for independent rate-setting in 2005 and no one on City Council - back then - wanted it.
"Maybe now is the time that we can move forward on this," said Adams. Saltzman hopes to have a concrete proposal before city council - or perhaps before voters - in the months ahead.
Saltzman will wait for guidance from the city's Public Utility Review Board - that's a citizens advisory group - before moving forward on any proposals.
