Proposal Received

This spring, the City of Lake Oswego received a proposal from Jacobs, a nationally renowned engineering and operations firm, to design, construct, operate and maintain a new wastewater treatment facility.

The project team and Jacobs presented an overview of the technical proposal and a project update at the June 16, 2026 Lake Oswego City Council meeting. Here is a link to the council report, agenda, and presentation.

Rate Increases Expected

The project will be funded through investments from the City of Portland, federal infrastructure loans, and revenue bonds.  The project costs will require Lake Oswego’s sewer utility rates to increase more than originally planned in 2022. Because sewer rates fund the sewer system, a rate increase is necessary to help fund this essential infrastructure investment. To learn more, visit our FAQ page.

Upcoming Council Meeting 9/1

The project team will be presenting a cost analysis and proposed sewer utility rate adjustment to Lake Oswego City Council at the September 1, 2026 meeting. A council report and meeting agenda will be available in late August, prior to the meeting.

In September 2026, the project team plans to hold two virtual information sessions to provide a project update and discuss the proposed rate increases with the public. Lake Oswego City Council will vote on the proposal and rate schedule at a Council Meeting shortly after, likely in October. The revised sewer rate would go into effect on July 1, 2027.

Next Steps

Once council approves the proposal, land-use permitting will continue, along with finalizing designs for the new facility.

Demolition of existing buildings at the new site and preliminary construction are expected to start sometime in 2027.

EPA Announces $123 Million WIFIA Loan to Lake Oswego for the Project

On September 9, 2025, the City of Lake Oswego closed (executed) a $123 million loan from the US Environmental Protection Agency for the Wastewater Treatment Facility project through the Water Infrastructure Finance & Innovation Act (WIFIA) program.

EPA’s announcement shared: “This project will help the city modernize its wastewater infrastructure by constructing a new wastewater treatment facility to replace its existing 60-year-old plant. The new facility will be compliant with current structural code, mitigating impacts from seismic activity. Overall, this project improves the city’s wastewater services and reduces the risk of untreated wastewater spilling into the Willamette River.”

“Deferring principal payments for five years allows the City of Lake Oswego to more slowly and uniformly raise customer sewer rates, compared to a larger and more immediate rate increase of approximately 20 percent without WIFIA financing.”

Read the EPA announcement and factsheet.