Subject:
Title
Intent to Adopt Water and Sewer Rates FY 2026-27 (5 min. Staff Presentation)
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
March 9, 2026, Town Council Work Session
March 14, 2026, Town Council Work Session
March 23, 2026, Town Council Work Session
April 6, 2026, Town Council Public Hearing
EXPLANATION AND SUMMARY:
The Town contracted with an independent consultant to perform a comprehensive water and sewer rate analysis to evaluate current and future operational and infrastructure funding needs. Based on the consultant’s findings and recommendations, staff has proposed a 4.0 percent increase (Option 1) or a 1.0 percent increase (Option 2) to volumetric water and sewer rates to address rising operating costs and support increased investment in the replacement and maintenance of the Town’s water main infrastructure.
A public hearing on the proposed rate adjustments was held on April 6, 2026. Under the proposed rates, the average residential customer using 12,000 gallons of water per quarter would see an estimated increase of approximately $15 per quarter, or $60 annually under Option 1. The average residential customer using 12,000 gallons of water per quarter would see an estimated increase of approximately $4 per quarter, or $16 annually under Option 2.
Water availability and meter purchase fees are proposed to increase by 2.0 to 3.0 percent, to match fees charged by Fairfax County. Consumption charges proposed for FY2026-27 are as follows:
Option 1 - 4% Increase
|
RESIDENTIAL CONSUMPTION |
Block Rate |
|
Water 0 - 9,000 gallons |
$7.85 per 1,000 gallons |
|
Water 9,001 - 18,000 gallons |
$8.60 per 1,000 gallons |
|
Water 18,001 plus gallons |
$9.80 per 1,000 gallons |
|
|
|
|
Sewer 0 - 9,000 gallons |
$12.50 per 1,000 gallons |
|
Sewer 9,001 - 18,000 gallons |
$13.60 per 1,000 gallons |
|
Sewer 18,001 plus gallons |
$15.70 per 1,000 gallons |
|
|
|
|
Residential Base Rate |
$45 / quarter |
|
COMMERCIAL CONSUMPTION |
Block Rate |
|
Water 0 - 120,000 gallons |
$7.85 per 1,000 gallons |
|
Water 120,001 - 360,000 gallons |
$8.60 per 1,000 gallons |
|
Water 360,001 plus gallons |
$9.80 per 1,000 gallons |
|
|
|
|
Sewer 0 - 120,000 gallons |
$12.50 per 1,000 gallons |
|
Sewer 120,001 - 360,000 gallons |
$13.60 per 1,000 gallons |
|
Sewer 360,001 plus gallons |
$15.70 per 1,000 gallons |
|
|
|
|
Commercial Base Rate |
5/8” meter $70 /quarter |
|
|
1.0” meter $170 / quarter |
|
|
1.5” meter $345 / quarter |
|
|
2.0” meter $535 / quarter |
|
|
3.0” meter $1,075 / quarter |
|
|
4.0” meter $1,675 / quarter |
Option 2 - 1% Increase
|
RESIDENTIAL CONSUMPTION |
Block Rate |
|
Water 0 - 9,000 gallons |
$7.60 per 1,000 gallons |
|
Water 9,001 - 18,000 gallons |
$8.35 per 1,000 gallons |
|
Water 18,001 plus gallons |
$9.55 per 1,000 gallons |
|
|
|
|
Sewer 0 - 9,000 gallons |
$12.05 per 1,000 gallons |
|
Sewer 9,001 - 18,000 gallons |
$13.15 per 1,000 gallons |
|
Sewer 18,001 plus gallons |
$15.15 per 1,000 gallons |
|
|
|
|
Residential Base Rate |
$45 / quarter |
|
COMMERCIAL CONSUMPTION |
Block Rate |
|
Water 0 - 9,000 gallons |
$7.60 per 1,000 gallons |
|
Water 9,001 - 18,000 gallons |
$8.35 per 1,000 gallons |
|
Water 18,001 plus gallons |
$9.55 per 1,000 gallons |
|
|
|
|
Sewer 0 - 9,000 gallons |
$12.05 per 1,000 gallons |
|
Sewer 9,001 - 18,000 gallons |
$13.15 per 1,000 gallons |
|
Sewer 18,001 plus gallons |
$15.15 per 1,000 gallons |
|
|
|
|
Commercial Base Rate |
5/8” meter $70 /quarter |
|
|
1.0” meter $170 / quarter |
|
|
1.5” meter $345 / quarter |
|
|
2.0” meter $535 / quarter |
|
|
3.0” meter $1,075 / quarter |
|
|
4.0” meter $1,675 / quarter |
A public hearing was held on April 6, 2026, to allow public comment on the new rates. The finance department requests that Council adopt the rates as proposed, effective
July 1, 2026.
Departmental Recommendation: Recommend approval of water and sewer rates for FY2026-27.
Finance Recommendation: Recommend approval of water and sewer rates for FY2026-27.
Purchasing Recommendation: N/A
Town Attorney Recommendation: The Town has conducted a public hearing and advertised the proposed FY26-27 Water and Sewer Rates. The Town Council may approve the proposed water and sewer rates in its discretion.
Town Manager's Recommendation: I recommend the Town Council adopt an ordinance setting water and sewer rate for fiscal year 2026-2027, beginning July 1, 2026, as presented.
Cost and Financing: N/A
Account Number: N/A
Prior Funding Approval: Annual General Budget (Year), Amendments, CIP Budget (Year), or ARPA.
Decision Needed by this date: May 18, 2026
PROPOSED/SUGGESTED MOTION
Recommended Action
“I move to adopt an ordinance setting water and sewer rate for fiscal year 2026-27, beginning July 1, 2026, as presented as [Option 1] or [Option 2].”
And
“I further move that the Town Clerk be directed to advertise a Notice of Adoption.”
Or
Other action deemed necessary by Council.