2025 Water Rate Study

For Nesika Beach – Ophir Water District  

The 2025 Water Rate Study was prepared by the Oregon Association of Water Utilities to evaluate whether current water rates adequately support the district’s operational costs, infrastructure needs, and long term financial sustainability.

The study found that while current base rates are relatively strong, the district’s overall rate structure no longer generates enough revenue to fully support system operations, capital improvements, and future infrastructure replacement needs.

Key Findings

• The district currently serves approximately 589 connections, the majority of which are residential customers.

• Current operating and debt service expenses total approximately $716,867 annually.

• About 30% of produced water is categorized as unaccounted-for water, which exceeds recommended state guidelines and represents significant operational cost and potential lost revenue.

• The current consumption charge of $6.19 per 1,000 gallons is substantially below the estimated delivery cost of $13.77 per 1,000 gallons.

• Existing base rates cover approximately 56% of the district budget, while industry standards typically recommend 60–75% coverage through fixed base rates.

Recommended Approach

The report recommends a phased, multi-year rate adjustment strategy designed to:

• maintain safe and reliable water service,

• fund capital improvement projects,

• improve long term infrastructure sustainability,

• and distribute costs more equitably among users.

Recommendations include:

• gradual increases to monthly base rates,

• updated tiered consumption rates,

• annual review of rates using inflationary indices,

• continued capital improvement planning,

• and improved tracking of water loss and operational efficiency.

The study also emphasizes the importance of balancing affordability with the need to maintain and improve aging infrastructure while avoiding sudden large rate increases for customers.

Long Term Planning

The report outlines a proposed annual capital improvement allocation of approximately $100,000 to support future upgrades identified in the district’s Water Master Plan.

Future recommendations include:

• routine annual rate reviews,

• continued reduction of water loss,

• tracking operational metrics,

• and transparent communication with customers regarding infrastructure investments and system improvements.