Central Point City Council approved a water rate increase Thursday night slightly lower than the one initially proposed.

City officials sought a $4.63 increase to the city’s base water rate, which would have generated an estimated $450,000 in additional revenues per year. While small increases are made annually, city officials said a more substantial increase was needed this year to ensure service levels could be maintained and to save for needed system improvements.

After discussion between the council and city staff, Councilor Neil Olsen proposed a base rate of $3.63 — $1 lower than suggested — for a total monthly base rate of $20 per month. The revised proposal ultimately passed 5-1.

The sole opposing vote came from Councilor Kelley Johnson. She said later that she voted against the smaller rate increase because she favored the larger increase.

Two additional usage-based “tiers” were also approved. Residential users who use more than 100 cubic feet (748 gallons) in a month will see a per-cubic-foot increase from $3.42 to $6.83. Commercial and multi-family users will see an increase of $1.93 per cubic feet to $2.90 per cubic feet after they reach 200 cubic feet of usage.

Public Works Director Matt Samitore said he was hopeful the increased usage rates would incentivize conservation. Samitore said the lower base rate would generate about $350,000 per year. The council, Samitore noted, would need to revisit irrigation rates in the city, as well as water usage by homeowner’s associations. 

A new reservoir, one of several capital improvements planned for the city’s water system, would be funded with the additional revenue. Samitore estimated the reservoir to cost about $7 million in today’s dollars and would be built sometime in the next decade.

City manager Chris Clayton applauded public works staff for finding ways to cut costs.

“I don’t think it would have been fair to ask the public for this increase if we hadn’t done that,” Clayton said.

“We have made good investments in the water system for a long time now, and we don’t want to diminish those service levels, long term.”

New rates will take effect beginning in February.