City of Molalla COVID-19 Impact Talking Points

COVID-19 is having a vast impact on Molalla residents. As your City government, we understand and empathize with the challenges faced by households in our community. We are assessing all options, and there are some realities we cannot change, but there are steps we are taking.

What we cannot do

Reduce Rates:  Utility rates pay for critical water, wastewater, stormwater.  Rates are established to pay for the cost of the programs they support. These costs have not changed since the COVID-19 crisis began and Molalla utility rates cannot be reduced.

Waive Costs:  Since the costs are fixed, if a customer doesn’t pay the balance then it must be paid by other customers.

Debt Payments:  Our utility rates also fund the cost of debt payments and if Molalla lowers its rates, then the City risks defaulting on its loans and possibly being unable to make future debt payments or meet construction mandates.

Delay Projects:  The projects being funded by sewer rate increases are costly, but necessary for upgrades to our wastewater system and are critical to public health. Oregon DEQ requires the City to improve its system to meet permit requirements and keep the watershed and fish populations healthy. These projects cannot be delayed, and planned rate increases are necessary to fund this important work.

What we can do

Continue Operations:  The City of Molalla utilities will continue to operate 24/7 with essential staff on-site to provide drinking water, sewer service, streets and park maintenance – more important than ever in a health emergency.

Seek Other Funding Sources:  The City Council and staff continue their work to explore grant funding, low interest loans, and other financing solutions that will reduce costs and lower future rate increases for customers – See attached document.

Accomodate Hardship Request:  Steps are being taken to accommodate customers experiencing financial difficulties (EXAMPLES ONLY):

The City has placed a moratorium on water shutoffs for non-payment due to State of Emergency

The City has created a Utility Assistance Program for those needing some help paying their utility bills.  Please visit our website to find out how to apply for assistance or make a donation to fund those in need.

Provide Other Resources:  For other Community Resources, please visit the City website dedicated to COVID-19 impact response