The Clean Water Services Board of Directors voted to adopt the fiscal year budget. (Submitted by Washington County)

The Clean Water Services Board of Directors voted unanimously June 17 to adopt the 2025-26 fiscal year budget, including a roughly $1.95 increase to the average residential customer’s bill starting July 1.

As the rate increase was under discussion, the former head of the agency was caught spending nearly half a million dollars on luxury resort stays and later resigned.  Despite the lavish spending, Clean Water Services says the approved rate increase is the result of increasing operating costs.

“These increases ensure CWS can keep up with rising operating costs, comply with stricter federal water quality regulations, fund debt service for major upgrades to CWS’ four water resource recovery facilities and wastewater conveyance system, and support the watershed’s overall health,” agency spokesperson Julie Cortez said.

The rate increase comes at a time of controversy for the district. Board members agreed to curb excessive spending after reports by The Oregonian detailed luxury resort stays of CWS executives in Hawaii and $440,000 spent on meals over five years — four times more than two metro area counterparts combined.

But Cortez says the lodging and dining accounts for a negligible fraction of the agency’s $752.2 million budget.

“Spending on all food for CWS’ roughly 450 employees, including executives, accounts for approximately .01% of CWS spending annually,” Cortez said.

Clean Water Services provides sewer and water management to over 600,000 people in Washington County. CWS bills pay for sewer pipes, stormwater management and wastewater treatment plants across the region.

This year’s 3% rate increase will add about $1.95 per month toward residents’ bills. According to the budget committee, this rate increase isn’t out of the ordinary: CWS has raised rates by an average of 3.5% annually over the past decade to combat rising operating costs.

This 3% adjustment is a decrease from the original proposal for this budget cycle. The CWS budget committee — made up of the five county commissioners and five additional community representatives — proposed a 4% rate increase. The budget committee also suggested the board consider the development of a low-income assistance program in the face of the proposed increase.

Investigation of expenditures

As a result of the scandal surrounding the luxury spending, former CWS leader Rick Shanley was appointed acting chief executive officer of the agency following the resignation of former CEO Diane Taniguchi-Dennis.

Taniguchi-Dennis received a one-time payment of $121,861, per her separation agreement signed June 3.

In an effort to restore accountability, the April resolution directed the district to hire an outside auditor to examine the district’s travel and meal expenditures, review and restrict the executive team expenditures and review and revise the travel, meal and refreshment policies.

CWS has contracted Morones Analytics to conduct a forensic accounting investigation of training, travel, and meals expenditures for the last four fiscal years, Cortez said. The final report should be completed by Sept. 30 and made public shortly after.