Portland's Water Fund generated $295.9 million of gross revenues in FY 2024-25 and $123.4 million of net revenues available for debt service, covering its first-lien water revenue bond payments 7.07 times, according to the City of Portland's annual financial report for the year ended June 30, 2025.
A four-year view
First-lien coverage was 6.67 times in FY 2021-22, 7.93 in FY 2022-23 and 8.09 in FY 2023-24. The FY 2024-25 figure is not strictly comparable: from that year, direct operating expense of $172.5 million includes the 5% utility license fee. Coverage across first- and second-lien debt combined was 2.14 times in FY 2024-25.
Ratings and a new bond sale
In August 2026, The Bond Buyer reported that S&P upgraded Portland's second-lien water revenue bonds from AA to AA+ and affirmed the first lien at AA+, while Moody's affirmed Aa1 for the first lien and Aa2 for the second, with stable outlooks. On August 26, 2026, the City sold $567.53 million of second-lien revenue and refunding green bonds, including refunding.
What the debt is for
The Bull Run Filtration project has a $2.46 billion budget and was 43% complete at end-September 2026. It is financed in part by two federal WIFIA loans of $726.6 million at 1.89% and $319 million at 4.49%. The Bureau's March 2024 plan projected total debt outstanding rising from about $904 million to about $2.44 billion by FY 2028-29.
The cushion
The Water Fund's unrestricted net position was $104.62 million at June 30, 2025, up from $94.97 million at June 30, 2022.
What the Bureau supplies, what it owns, how its rates are set and what is scheduled to 2030 are set out in the full report. The full report, Utility Intelligence Profile: Portland Water Bureau, is available for USD 99. For a free overview, read the Portland Water Bureau Utility Snapshot.