Notice of Sewer Rate Increase

On March 4, 2026, S&P Global Ratings conducted a review of the District’s net revenues, annual debt service payments, and liquidity position. S&P noted that, during fiscal years 2022 through 2025, challenges remained in restoring stable financial metrics, and few, if any, rate increases had been implemented. As a result, the credit rating was downgraded from A to BBB+, and the outlook was revised from Stable to Negative. Additionally, S&P indicated that the rating could be further lowered over the next two years if monthly rates are not increased.

On May 21, 2026, the Board of Directors and the Budget Committee held a budget meeting for the upcoming 2026–2027 fiscal year. During the meeting, budget officers outlined the costs associated with the day-to-day operations, including testing, permitting, chlorination, operation, maintenance, repairs, and major facility replacements and upgrades.

Over the past five years, we have experienced significant increases in costs from vendors and service providers, which have been absorbed without raising customer rates. However, to maintain financial stability and continue providing reliable service, rate increases will be necessary moving forward.

During the bond refunding process in 2023, the District indicated that annual rate increases of approximately 2% would be implemented if necessary. Those increases have not been enacted to date. The proposed increase from $74.00 to $80.00 is necessary to address the cumulative impact of deferred rate adjustments and the rising operational costs experienced over the past several years.

The proposed rate increase would take effect on July 1, 2026, with the start of the 2026–2027 fiscal year.

The Board of Directors will discuss the proposed rate increase during its regular meeting on Thursday, June 18, 2026, at 10:00 a.m. at 55841 Swan Road, Bend, Oregon 97707.

Customers and citizens are encouraged to attend the meeting and provide comments, share concerns, or ask questions regarding the proposed rate increase. If you have additional questions, please contact the District at (541) 593-3124, visit our website at oww2sd.com, or email us at office@oww2sd.com.