In a decisive move towards financial fairness, the Portland Water Bureau has scrapped the controversial returned payment fee after an Ombudsman investigation underscored its unfair burden on certain socioeconomic groups and its impracticality in terms of collection costs. Deputy Ombudsman Andy Stevens articulated the resolution to the fee debacle, emphasizing the alignment with the city's aspirations for anti-racism, equity, and fiscal sensibility. Customers previously hit with these fees found themselves penalized for situations that weren't necessarily within their control, such as bank errors or changes.
Indeed, one Kerry Rasmussen fell victim to this fee when her bank's merger botched her billing details. In her interaction with the Ombudsman's office, Rasmussen expressed a measured tolerance for accountability but described the $35 levy as excessive for a mandatory service provider, according to a statement obtained by the Portland Water Bureau. An April 2024 investigation conducted by the Ombudsman revealed that in 2023, the Water Bureau's costs to collect the fees far exceeded what was recouped, with a $72,000 discrepancy being indirectly charged to ratepayers citywide.
This inefficiency coupled with the discovery that, for three years, customers were charged above the state-mandated maximum led to the recommendation not just to axe the fee, but to reimburse affected customers. The Bureau took its time to warm up to the Ombudsman's advice; however, by December 2024, it confirmed the fee's removal beginning Fiscal Year 2025-26 and has already credited $10,270 back to 864 overcharged customers.
Encouraged by the progress with the Water Bureau, the Ombudsman campaigned for similar changes in other city agencies. The Revenue Division, without awaiting prompting, removed the fee. Meanwhile, the Bureau of Transportation and Fire & Rescue have followed suit, committing to discard the cost in the next fiscal year. These developments garnered public appreciation, with Rasmussen commending the Ombudsman for restoring her belief in local governance processes, she told the Portland Water Bureau.
