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TL:DR

_{Big Butte Springs about 30 miles northwest of Medford between Mount McLoughlin and the town of Butte Falls is Medford Water's main supply of water. The springs’ capacities vary from 25 million gallons per day (MGD) to 35 MGD and are the primary source of system water for the entire year. (Medford Water)}

Medford water rates increased by 13.6% March 1 for single-family residential customers, the second double-digit increase in two years.

On March 1, 2025, Medford Water had raised rates by 15.4%, but such increases are unlikely for the near future, officials said.

“We don’t anticipate having to do double-digits increases. Going forward we should see less than 6%,” said Julie Smitherman, water resources and customer service manager with Medford Water. Studies done for the agency are showing that trend for the next several years, she said.

A customer in Medford with a three-quarter-inch meter using an average of 10,000 gallons per month will see costs increase from $37.58 to $42.67 under the new rates.

Much of the increase is due to current or upcoming capital projects undertaken by the commission, which provides water for about 150,000 residents in the Rogue Valley. Out of every dollar the agency receives, 63 cents are spent on capital improvement projects, 34 cents on operations and maintenance and 3 cents on bond interest payments.

A new Water Operation Center is being constructed at 4677 Industry Drive. S&B James will build the center for approximately $30 million to replace outgrown facilities.

Administrative and operation functions that are currently housed separately will be combined into one facility, accommodating the organization for the next 50 years. The new center will meet modern resiliency requirements so it can operate independently from the electrical supply grid in the event of a natural disaster. Ongoing improvements to system technology and cybersecurity will be incorporated.

A Capital Hill Reservoir replacement project is expected to begin in July and continue through 2028. The reservoirs at the site were constructed in 1908, 1927 and 1946 and will be replaced with an earthquake-resilient reservoir. The reservoirs store drinking water that comes directly from Big Butte Springs, the Rogue Valley’s main water supply at Mount McLoughlin.

Bidding for construction services on the reservoir is expected to begin at the end of March. The cost is estimated at $33.9 million.

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In 2022, Medford Water received a $97 million federal Water Infrastructure Finance Innovation Act loan that is helping to fund improvement projects. The recently completed expansion of the Robert A. Duff Water Treatment Plant on the Rogue River and a transmission line in Table Rock Road were partially funded by the loan, as is the operations center.

Annual third-party studies are done every year by the commission to determine the revenue necessary to fund new projects and to keep up with operating costs. The 2025 study done by HRD, Inc. was reviewed, and the commission approved the new rate increase in December.

In fall quarter 2025, Medford customers used 57% of the water delivered. Partner cities including Ashland, Central Point, Eagle Point, Jacksonville, Phoenix and Talent used 24%. So-called outside customers, such as White City residents, used 18%. The last 1% was used by water districts.

Wholesale rates for partner cities were increased by 26.7% on March 1. Other users also saw increases. Partner cities set their own rates for water after purchasing it from the commission.

Central Point water cost increases for customers were detailed in a Feb. 6 Rogue Valley Times article. Increased wholesale rates were among factors, along with rising construction and labor costs for the city system, which led to increased rates between 20% and 24% starting Feb. 21. Officials said city rates could increase annually through 2030 to meet needs.

Eagle Point City Council adopted new rates that became effective after Feb. 12. The increase ranges between 6% and 10% based on which usage tier a residential customer falls into. Users pay a base rate of $18.11 per month.

“The City anticipates the cost of materials and services will continue to increase over time, including the cost of wholesale water,” City Administrator Aarone Prunty wrote in an email.

City Administrator Jeff Alvis reported at a Feb. 17 Jacksonville City Council study session that Jacksonville residents would see a 20% increase on their bills beginning in March due to the MWC increase. The consumption rate went from $2.02 to $2.43-per-100-cubic-feet. A base rate of $32.90 per residence is also charged. It can be subject to adjustment on July 1.

When questioned by Councilor Andrea Thompson as to why the full cost wasn’t passed to customers, Alvis said the city’s rate were structured to help stay ahead of rising costs, so the full 26.7% wasn’t needed.

Phoenix will look at its water rates during upcoming budget preparations, likely during April, said City Manager Eric Swanson. The town’s last water rate increase, done in 2024, ended a multi-year period of increases. The City Council would need to approve any increase. Phoenix’s monthly water fee for up to 5,000 gallons is $45.68 for a single-family residence.

Talent has had annual rate increases scheduled for March 2025 through March 2028. They go from $24.50 in 2025 to $29 in in 2028 for the base residential charge. The MWC increase will affect rates, said City Manager Alex Campbell.

Talent recently completed a major water meter replacement project that has improved the accuracy of customers’ meters and will result in increased revenue, Campbell said. The staff is planning to “re-run” the water rate model later this spring to determine whether to recommend that the city council accelerate future rate increases in response to the MWC increase.

Ashland’s water system is tied into the MWC lines. Most of Ashland’s water, however, comes from Reeder Reservoir above the city, but the commission water could be used in circumstances such as emergences or droughts.

My Thoughts 💭My Thoughts 💭

This is what is coming. As the water infrastructure needs upgrading and repair the cost will be burdened by the homeowners. I find it impressive only 3 cents of the raise are going to bond payments. But smart municipalities should create a bitcoin fund and draw from that to do water projects such as these.