MEDFORD, Ore. (Jun. 26, 2026) — The City of Medford officially broke ground Thursday on a $330 million project to modernize its Regional Water Reclamation Facility, launching one of the largest infrastructure investments in the Rogue Valley’s history.
City leaders, project partners, regional stakeholders and community members gathered for a ceremonial groundbreaking marking the start of the multi-year project, which is designed to bring the wastewater treatment facility into compliance with updated environmental regulations while ensuring reliable service for Medford and surrounding communities.
“This project is about making sure we have the infrastructure in place to continue serving our community well into the future,” Interim City Manager John Vial said during the ceremony. “These improvements are required to meet updated environmental requirements, and we’re committed to delivering them in a way that protects the Rogue River while being responsible stewards of public resources.”
The project stems from an updated wastewater discharge permit issued by the Oregon Department of Environmental Quality in August 2021. The permit established stricter limits for total phosphorus and total nitrogen under the federal Clean Water Act, requiring significant upgrades to the city’s existing wastewater treatment facility.
The city is partnering with Slayden Constructors, West Yost, Black & Veatch and Carollo Engineers to design and build the improvements.
Funding for the project comes through a combination of utility rate revenue and long-term financing. In December 2025, Medford secured a $147 million Water Infrastructure Finance and Innovation Act (WIFIA) loan through the U.S. Environmental Protection Agency. City officials say the low-interest federal financing will reduce the overall cost of the project while allowing construction to proceed.
“This WIFIA loan approval is an important milestone for Medford,” Vial said. “It provides long-term, low-cost financing that allows us to move forward with critical infrastructure improvements while managing costs for our ratepayers. We appreciate the support of Senator Wyden, Senator Merkley, and Congressman Bentz throughout this process and their continued partnership in securing resources for our community.”
According to the EPA, the WIFIA loan will benefit approximately 166,000 people, improve the reliability of regional wastewater infrastructure, help protect water quality in the nationally significant Rogue River and support the creation of more than 900 local construction jobs.
Public Works Director Dan Worth said the financing will strengthen the city’s long-term infrastructure planning.
“Access to WIFIA financing strengthens our ability to plan responsibly for the future,” Worth said. “This approval helps ensure our wastewater systems remain safe, reliable and resilient for decades to come.”
Federal lawmakers also praised the investment.
U.S. Sen. Jeff Merkley said the WIFIA program was created to help communities address critical water infrastructure needs while supporting local job creation.
U.S. Sen. Ron Wyden called reliable water infrastructure essential for thriving communities and said he would continue advocating for additional wastewater infrastructure funding across Oregon.
U.S. Rep. Cliff Bentz described the loan as “a major win” for Medford, saying it will allow the city to modernize critical infrastructure while helping keep costs manageable for ratepayers.
The wastewater facility improvements represent one of the primary infrastructure investments supported by utility rate adjustments taking effect July 1.
Beginning next month, the monthly utility bill for single-family residential customers will increase from $76.53 to $85.91, a monthly increase of $9.38. Customers will first see the higher rate on bills issued in August.
Nearly half of the increase—$3.96 per month—is allocated to sewer collection and treatment services, including the DEQ-required wastewater treatment upgrades. Other increases include $3.08 for public safety, $1.48 for parks, $0.48 for storm drainage and $0.38 for street maintenance.
City officials said the phased rate adjustments, combined with the federal loan, will help finance the massive infrastructure project while spreading costs over time for utility customers.
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