Bend breweries bracing for 65 percent sewer rate hike
Another round of water and sewer rate increases is coming for Bend residents and businesses. But for a few companies, most notably breweries, this round is likely to have a special hit — a 65 percent jump in sewer rates.
“It’s going to have a huge financial impact,” Worthy Brewing CEO Chris Hodge said Thursday.
Worthy Brewing is planning to produce 16,000 barrels of beer this year, and that means its water and sewer usage is going to go up as well.
“Our business growth rate is expected to be 30 to 40 percent a month,” Hodge said.
Bend city officials said they need the revenue for needed expansion and upgrades to the system. Overall, the city has said it needs to boost funding for water by 2 percent, stormwater by 3 percent and sewer by 6 percent.
“We’ve been investing a lot in bringing our collection system up to meet the needs of our current community and the pace of growth in our community,” said city Senior Policy Analyst Gillian Ockner.
To get to the 6 percent overall, the city is planning on shifting more of the cost to heavier water and sewer users, such as breweries, rather than spread it equally among all users.
“If we didn’t do that, what happens is that the other customer classes essentially subsidize those users that create a higher impact on our system,” Ockner said.
Brewery officials said they understand a rate hike is necessary, but they believe it’s too much too soon.
“It’s unheard of,” Hodge said. “I can’t imagine another business that I’ve ever been involved with where you’ve seen that big jump of 70 percent, of any fixed cost.”
Hodge said the brewery would have to make budget adjustments to absorb the added costs, but it wouldn’t cut down on staff.
“It could have an impact on the final cost of the beer,” Hodge said.
The City Council is expected to make a decision on June 15 and is discussing whether to phase in the “extra-strength charge” over two or four years.
Homeowners can expect to see their sewer and water rates increase by August or September.
