Politics

Salem's Water Plan Raises Rates for Small Users, Cuts Commercial Bills

Salem residents using under 4,000 gallons of water monthly would pay higher unit rates under the measure while accounts exceeding 15,000 gallons receive credits beginning in fiscal year 2027.

By Salem Policy Desk · Published July 8, 2026

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This article was written by AI from the linked sources and was not reviewed by a journalist before publishing. The Daily Salem is part of The Daily Network and follows our reasonable editorial care.

Salem's Water Plan Raises Rates for Small Users, Cuts Commercial Bills — Storyblocks

Salem voters will decide in November on a city charter amendment that restructures water and sewer billing into five consumption tiers. The change replaces the current flat rate with higher charges for the lowest tier and lower per-unit rates plus credits for the highest tier.

Why the Referendum Matters Now

The Salem Public Works Department documented a 14 percent rise in treatment plant operating costs between 2023 and 2025 in its May 2026 rate study. City records show the existing flat-rate structure produced $48 million in utility revenue last year, with residential accounts supplying 62 percent of that total. The proposed tiers aim to align revenue collection more closely with peak demand periods.

Under the measure, households consuming 4,000 gallons or less each month would face an increase of 18 cents per gallon above the current rate. Accounts using between 4,001 and 8,000 gallons would see a smaller per-gallon rise of 6 cents. Businesses and larger residential properties above 15,000 gallons monthly would receive a 9-cent discount plus an annual efficiency credit of up to $240.

Projected Financial Effects

City budget documents project that the lowest tier covers 41 percent of residential accounts. Those households would pay an average additional $11.40 on monthly bills. The highest tier, representing 7 percent of accounts, would save an average of $29 per month. The measure does not alter fixed service charges or stormwater fees.

If approved, the new rates take effect July 1, 2027. The city clerk must publish final tier boundaries and credit application forms by March 2027. Residents may submit usage data from the prior 12 months to qualify for the highest-tier credits.

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