LAKE OSWEGO CITY COUNCIL APPROVES CONTRACT FOR NEW WASTEWATER TREATMENT FACILITY (Photo) - 10/14/26
Sewer Rate Adjustment Effective July 2027
LAKE OSWEGO, Ore. — October 14, 2026 — The Lake Oswego City Council has approved a contract with Jacobs to design, build, operate, and maintain a new wastewater treatment facility. The project is a major infrastructure investment designed to protect water quality, improve system reliability, and support the community for generations.
On Tuesday, October 13, Council also approved a resolution directing staff to proceed with a 28% sewer rate adjustment effective July 1, 2027, to help fund the project. The approved rate adjustment represents the lowest projected long-term cost to customers among the funding options considered by the City Council. The adjustment is expected to increase sewer bills by approximately $25–$30 per month for an average customer.
The decision advances a City Council goal to collaborate with the City of Portland on a financially and environmentally responsible, long-term investment in wastewater infrastructure. The new facility will replace the aging 1964 Tryon Creek Wastewater Treatment Plant and is designed to improve treatment performance and water quality, provide reliable service, and better withstand seismic and flood events.
“This is a significant investment in Lake Oswego’s future and in the essential services our community depends on every day,” said Mayor Joe Buck. “While the cost is substantial, continuing to rely on aging infrastructure carries operational risks of its own. By moving forward with this project in partnership with Portland, we’re investing in reliable wastewater service, cleaner water, and a more resilient system for generations to come.”
A long-term investment in essential infrastructure
The Tryon Creek Wastewater Treatment Plant is more than 60 years old and in need of replacement to address aged mechanical and structural components. Lake Oswego, with Portland’s support, is planning to build a new, resilient, environmentally sustainable wastewater treatment facility to replace the old plant.
The Lake Oswego Wastewater Treatment Facility is one of the largest capital investments in the City of Lake Oswego’s history. The modern facility will provide improved water quality, enhanced seismic resilience, strict management of odor, and reliable performance.
As the Design-Build-Operator, Jacobs, a nationally recognized critical infrastructure services firm, will be responsible for designing, building, operating, and maintaining the facility.
"This project represents a generational investment in environmental stewardship and essential public services,” said Michelle Green, Jacobs’ Vice President. “Jacobs is proud to partner with the City of Lake Oswego, not only to build this infrastructure, but to operate and care for it as well. It’s a responsibility we take seriously, and we’re honored to be part of something that will serve the community for decades.”
Demolition of existing buildings at the new site is expected to take place in early 2027. Construction is expected to take about five years to complete.
Funding the project
The project will be funded through a combination of sewer utility revenue, a federal Water Infrastructure Finance and Innovation Act (WIFIA) loan, City of Portland contributions, municipal bonds, and System Development Charges.
Because sewer rates fund the sewer system, an adjustment is necessary to help pay for this essential infrastructure investment. The approved 28% adjustment will take effect July 1, 2027, followed by annual inflationary adjustments estimated at approximately 3.9%, subject to future rate-setting decisions.
Learn more
Community members can learn more about the wastewater treatment facility project, its funding, and proposed improvements on the project website: lakeoswegowastewaterfacility.org
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