Portland Water Bureau — Part 1 of 2

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Portland Water Bureau Public Works Service Area Portland Water Bureau Priya Dhanapal, DCA - Public Works Edward Campbell, Interim Director Water Bureau 25.9% City Budget 74.1% Bureau Support 4.3% Conduits/Transmission 12.2% Customer Services 5.1% Distribution Mains 5.0% Water Program Treatment 60.2% Other 13.2% Bureau Overview Requested Revised Total Change from Percent Requirements FY 2024-25 2025-26 Prior Year Change Operating $1,412,970,485 $1,475,422,777 $62,452,292 4% Capital $589,980,575 $704,084,000 $114,103,425 19% Total $2,002,951,060 $2,179,506,777 $176,555,717 9% Authorized Positions 656.70 624.80 (31.90) (4.86)% 26 City of Portland, Oregon - FY 2025-26 Requested Budget

Portland Water Bureau Public Works Service Area HydroelectricPower Division Interim Director,Edward Campbell Portland Water Bureau Water Division Business ServicesCustomer ServicesFinance and Support ServicesEngineeringMaintenance and Construction ServicesOperationsResource Protection and Planning City of Portland, Oregon - FY 2025-26 Requested Budget 27

Portland Water Bureau Public Works Service Area Bureau Summary Bureau Mission The Guiding Statements of the Portland Water Bureau (Water Bureau) include the following: Mission: To serve excellent water every minute of every day. Vision: The water the community loves is safe and abundant for generations to come. Equity: Work to uproot systemic inequities and their impacts on bureau employees and the people they serve. Commit to the difficult—and essential—work of transforming Water Bureau policies, practices, and culture to better serve historically and currently oppressed communities. Values:  Honor the bureau’s responsibility. Take part in a long legacy of careful stewardship of natural resources, infrastructure, and public trust. Never forget that water is essential.  Serve the community. Know people depend on the bureau. Be dedicated to listening, communicating, and acting with compassion.  Work well. Strength lies in the skills, expertise, and creativity bureau employees bring to work every day. Work hard, work safely, and adapt.  Use money wisely. Work to control costs while maintaining high standards. Invest to make the water system stronger, more flexible, and better prepared for challenges ahead.  Build relationships. Recognize the power of collaboration—with customers, coworkers, and partner organizations. Relationships guide the bureau’s work. Bureau Overview The Portland Water Bureau is dedicated to serving excellent water every minute of every day. The bureau has provided water to the Portland area for more than 120 years and is the largest water supplier in Oregon. About one million people receive water through wholesale or retail sales. The bureau monitors and protects two high-quality water sources: the Bull Run Watershed (primary surface water supply) and the Columbia South Shore Well Field (supplemental groundwater supply). These two sources work together to ensure water flows to customer taps year-round. Today the bureau is looking ahead to the next 100 years and planning improvements to increase the longevity, reliability, and resilience of the water system through judicious use of ratepayer dollars. Bureau staff work tirelessly to build and maintain water infrastructure that enhances public health and safety and contributes to the economic vitality and livability of the Portland metropolitan region. 28 City of Portland, Oregon - FY 2025-26 Requested Budget

Portland Water Bureau Public Works Service Area Executive Leadership  Edward Campbell, Interim Director  Kimberly Gupta, Operations  Cecelia Huynh, Finance and Support Services  Jodie Inman, Engineering  Ty Kovatch, Maintenance and Construction Services  Quisha Light, Customer Services  Sarah Santner, Resource Protection and Planning  Julia Thompson, Business Services MAJOR WORK GROUPS Business Services: Manages equity, organization development, human resources management, public information/involvement, community relations, training development, business process improvement, and Bureau-wide strategic planning. Customer Service: Manages customer accounts, customer inquiries, billing, customer payments, financial assistance programs, reading meters, quality assurance, water service inspections, and repair and replace meters. Engineering Responsible for planning, design, and construction of the Water System; asset Services: management, facility standards, emergency management, contracts management, drafting (including geographic information system mapping), surveying, inspecting, and records on supply and distribution system improvements. Administrative oversight of the hydroelectric power function. Finance and Support Manages financial planning, rate-setting, budgeting, accounting, auditing, Services: financial-analyses, fiscal-monitoring functions for the Bureau and provides administrative support to Bureau staff. Maintenance and Responsible for installation, repair, operation, and maintenance of the distribution Construction: related to mains, services, valves, hydrants, and leak-detection; purchasing and stores operation, and loss-control programs; manages two training programs and the emergency crew to response to outside normal work hour requirements. Operations: Responsible for the operation and maintenance of water storage and supply, treatment and transmission, water quality protection, regulatory compliance, laboratory services, system analysis, security, and addressing water quality customer complaints. Resource Protection Responsible for coordination with federal, State and local partners to protect the and Planning: quality of Portland’s drinking water sources, environmental regulatory compliance, adaptive planning, climate programs, water-efficiency programs, water resource education programs, and coordination of the Consortium. City of Portland, Oregon - FY 2025-26 Requested Budget 29

Portland Water Bureau Public Works Service Area RECENT ACCOMPLISHMENTS Washington Park Reservoir Improvement Project: This project replaced reservoirs built in 1894 with a new 12.4-million gallon, seismically reinforced underground reservoir. Since 2021, the new reservoir has supplied water to Portland’s west side, serving more than 360,000 people, including downtown businesses and residents, 20 schools, five hospital complexes, and more than 60 parks. Construction of the reflecting pools, bioswale, walking paths, and lowland wildlife area will finish in 2025. Smart Discount Program: In fall 2024, the Water Bureau launched a program that reduces utility bills for City of Portland sewer, stormwater, and water customers facing financial hardship. This program will help remove access barriers to financial assistance, more effectively distribute limited financial assistance dollars, and ensure equitable access to safe and clean drinking water and wastewater services. Bull Run Treatment Projects: In 2022, the bureau implemented the Improved Corrosion Control Treatment project, which adjusted Bull Run water’s pH and alkalinity to reduce corrosion in home and building plumbing. The bureau is in full compliance with the Environmental Protection Agency’s Lead and Copper Rule. The bureau also recently broke ground on the filtration facility, a legally mandated project that will meet state and federal drinking water regulations. Filtration will remove organic material from Bull Run water, helping to improve system resilience. CHALLENGES & OPPORTUNITIES The Water Bureau is partnering with the Bureau of Environmental Services to modernize utility meters and launch a new online customer service platform. Advanced metering infrastructure will provide greater visibility into water use, provide detail data that will provide accurate, real time information that helps identify and address usage patterns leaks and other sources of water waste and excess discharge to the wastewater system. The Water Bureau is working with Hydroelectric Power to relicense the City’s hydroelectric facilities in the Bull Run Watershed with the Federal Energy Regulatory Commission to continue to operate the hydropower facilities beyond 2029. Bull Run Treatment Projects: required to meet state and federal regulations. They include filtration plant and pipelines to connect to the water system. $2.134 billion through FY 2027–28. The Water Bureau and the Hydroelectric Power Division are receiving funds from the Portland Clean Energy Community Benefits Fund for various energy efficiency, renewable energy, and electrical upgrade projects. Five-Year Priorities Priorities include continuing to focus on water quality, source protection, system resilience, equity, affordability, and reliable drinking water infrastructure. 30 City of Portland, Oregon - FY 2025-26 Requested Budget

Portland Water Bureau Public Works Service Area Long-Term Financial Outlook The bureau will be proposing a 7.7% rate increase for FY 2025-26 as directed in the budget guidance. The forecast on water rates projects an 8.1% rate increase each year through the remainder of the five-year forecast period. Increased rates support capital projects, which include infrastructure replacements and improvements like the Bull Run Treatment Projects. Revenue from water sales also fund regular maintenance and operations of the water system and anticipated inflation increases. The five-year Capital Plan is $1.8 billion. City of Portland, Oregon - FY 2025-26 Requested Budget 31

Portland Water Bureau Public Works Service Area Performance Measures Actuals Actuals Target Target Strategic Performance FY2022-23 FY2023-24 FY2024-25 FY2025-26 Target Efficiency Percent of services installed more than 15 days for residentials and 60 days for 89.0% 96.0% 90.0% 90.0% 90.0% commercials after the permit was issued (lower number is better) Outcome Days any pump station in service does not meet system demand (lower number 0 0 0 0 0 is better) Number of City of Portland Nuisance Activity violations (lower number is better) 0 0 0 0 0 Number of unplanned conduit outages 0 0 0 0 0 Number of unplanned transmission outages. 1 1 0 0 0 Number of violations of state and federal drinking water quality regulations 0 0 0 0 0 Number of violations of state and federal environmental regulations 0 0 0 0 0 Security incidents resulting in damage to facilities or harm to employees (reflects 5 6 6 0 0 incidents logged in the Security budget program) Service line incidents that cause water users to not have service for more than 12 0 0 0 0 0 hours (lower number is better) Number of main leaks and breaks per 100 miles per year. 7.80 7.21 9.00 9.00 9.00 Compliance with meeting benchmarks of Water Management and 100% 0% 100% 100% 100% Conservation Plan Maintain the current rating for Water first lien revenue bonds 100% 100% 100% 100% 100% Percentage of community members who, in a statistically significant survey, say NA NA 75% 75% 75% they have "good" or "very good" awareness of the services the bureau provides Percentage of employees who have participated in employee enrichment 0% 0% 60% 60% 80% programming Percentage of files sent to records for archiving are filed in accordance with State 100% 100% 100% 100% 100% of Oregon and City of Portland retention rules. Percentage of Billed Revenue Collected 98.2% 120.0% 98.0% 98.0% 98.0% Maintain minimum daily water level in reservoirs that are in use 64.00% 61.00% 60.00% 60.00% 60.00% Percentage of hydrants in service at any point 99.7000% 99.8700% 99.5000% 99.5000% 99.5000% Output Amount of power sold to Portland General Electric in megawatt hours 57,975 74,215 84,800 84,800 84,800 Days Bull Run supply is available, excluding regulatory compliance events (such 365 365 365 365 365 as turbidity events that exceed regulatory limits) 32 City of Portland, Oregon - FY 2025-26 Requested Budget

Portland Water Bureau Public Works Service Area Performance Measures Actuals Actuals Target Target Strategic Performance FY2022-23 FY2023-24 FY2024-25 FY2025-26 Target Days total reservoir storage is above 6.9 billion gallons (the reservoirs' baseline 730 365 730 1,460 1,460 storage threshold) Groundwater capacity for 60 days of well use 60 65 73 73 73 Number of Assistance Program Information Events 17 0 10 10 10 Number of valves exercised/operated 1,006 756 750 750 750 Work orders the Maintenance and Construction group completes each year 3,890 4,180 4,000 4,000 4,000 Percentage of city's water supply provided by Bull Run watershed under 100.00% 100.00% 100.00% 100.00% 100.00% normal operating conditions Percentage of meters tested each year for accuracy 6+ inch meters and meters 97.20% 90.92% 90.00% 90.00% 90.00% with consumption over 1000 CCF/month Quality Percent of fountains operational 95% 94% 95% 95% 95% Percentage of calls answered within 60 seconds 64% 62% 80% 80% 80% Percentage of current budgeted Capital Improvement Plan expended 80% 80% 100% 100% 100% Percentage of projects completed within three months of the current planned 89% 0% 80% 80% 80% date. City of Portland, Oregon - FY 2025-26 Requested Budget 33

Portland Water Bureau Public Works Service Area Summary of Bureau Budget Requested Requested Actuals Actuals Revised No DP Total FY2022-23 FY2023-24 FY 2024-25 2025-26 2025-26 Resources External Revenues Miscellaneous Fund Allocations 0 0 6,580,836 2,363,112 2,363,112 Charges for Services 248,622,253 261,977,327 275,777,900 295,465,439 295,465,439 Intergovernmental 1,346,852 891,530 705,000 755,000 755,000 Bond & Note 0 79,655,396 647,370,375 559,500,000 559,500,000 Miscellaneous 11,380,797 13,520,817 16,139,105 22,546,703 22,546,703 External Revenues Total 261,349,902 356,045,070 946,573,216 880,630,254 880,630,254 Internal Revenues Fund Transfers - Revenue 218,899,417 275,440,090 766,178,918 937,789,278 937,789,278 Interagency Revenue 4,771,322 5,210,620 6,217,898 6,910,963 6,910,963 Internal Revenues Total 223,670,739 280,650,709 772,396,816 944,700,241 944,700,241 Beginning Fund Balance 282,184,993 0 283,981,028 354,176,282 354,176,282 Resources Total 767,205,634 636,695,779 2,002,951,060 2,179,506,777 2,179,506,777 Requirements Bureau Expenditures Personnel Services 87,636,262 99,150,857 109,869,348 110,137,627 107,346,704 External Materials and Services 44,023,988 49,682,458 56,454,074 67,173,499 67,173,499 Internal Materials and Services 23,883,659 26,520,145 32,645,563 38,047,628 38,485,768 Capital Outlay 53,847,641 97,190,340 541,468,000 645,353,000 645,353,000 Bureau Expenditures Total 209,391,550 272,543,800 740,436,985 860,711,754 858,358,971 Fund Expenditures Debt Service 66,683,770 66,884,884 75,144,702 92,692,542 92,692,542 Contingency 0 0 233,606,135 168,908,601 171,261,384 Fund Transfers - Expense 226,074,448 283,017,732 775,950,720 946,387,302 946,387,302 Debt Service Reserves 0 0 27,472,852 157,351 157,351 Fund Expenditures Total 292,758,217 349,902,616 1,112,174,409 1,208,145,796 1,210,498,579 Ending Fund Balance 265,056,868 0 150,339,666 110,649,227 110,649,227 Requirements Total 767,206,635 622,446,415 2,002,951,060 2,179,506,777 2,179,506,777 Programs Bull Run Watershed 9,416,472 9,898,845 11,942,840 13,823,495 13,823,495 Bureau Support 30,134,874 34,377,017 39,733,176 37,484,838 36,770,101 Business Solutions — 0 — — — Conduits/Transmission 13,985,931 23,351,107 129,724,146 104,413,137 104,413,137 Customer Services 22,771,008 24,799,301 37,661,254 44,416,438 44,088,167 Data Management 4,733,351 7,580,788 9,521,069 8,063,680 7,916,664 Distribution Mains 33,863,846 33,650,339 35,292,236 42,521,720 42,521,720 Employee Investment 3,816,965 4,118,069 4,198,914 4,678,730 4,293,568 Field Support 9,107,877 12,365,402 9,986,352 9,836,633 9,836,633 34 City of Portland, Oregon - FY 2025-26 Requested Budget

Parent: Public Works Service Area · PDF: pp. 1173-1181