May Water bills to include 20% rate increase

(4/21) Last year, the Burgess and Town Council discussed raising the Town’s water rates for residents alongside the semi-annual water special assessment fee of $100 – two payments of $50 that was extended earlier last year. The new rate increase of 20% (with an additional 3% each year for the next four years) went into effect in October 2024, however, residents will see the effects of the increase in May when their water bills arrive. This increase is still one of the lowest water rate increases in the area, especially compared to Emmitsburg which has increased their rates by 36%.

This increase is the first one since 2016, with "the hunt for saving dollars" as the reason why the Council delayed any increases for years. Last year, Burgess Chad Weddle laid out the history of the Town’s water rates beginning in 1995 when the base rate was $10. In 1998 the base rate was increased to $35, and the Town had an additional three 15% raises over 18 months. The next increase was in 2006 when the base fee was raised to $40. In 2015 it increased to $60 plus an additional 10% to each tier. A year later in 2016, the base fee was increased to $72 and that was the last time the rates were raised.

The goal for such a drastic increase is to account for the deficit in the Water Fund and to cover the operating expenses of the plant. The revenue from the assessment fee is used to pay down the principle of the 30-year loan of $7.3 million that the Town received from the State for the plant’s construction.

At prior meetings, Commissioners have discussed the implications of raising the water rates on residents; specifically, those with lower incomes and seniors on fixed incomes. Although Commissioners were reluctant to raise the rates, Town staff stressed the implications of not ensuring the water rates cover actual costs. Town Planner Sean Williams has referenced the recent public uproar in Emmitsburg when the Town was forced to implement a series of yearly 36% rate increases after failing to ensure that water rates cover the actual costs of water for years. Thurmont has also recently raised their water rates by 15%.

Commissioner Tom Gilbert has been an avid supporter of increasing the water rates and shared that the projected income with the 20% increase and assessment fee would increase the budget from $1.547 million to $1.752 million, a little over $200,000.

Even with the Water Fund in the red, residents present at last year's public workshop were very vocal in their disapproval of the increase in rates. Homeowners in Discovery were especially concerned about the increases as the nine-million-dollar price tag of the Discovery water main replacement will also need funding.

The Council did discuss other options for future consideration to include

revoking the assessment fee entirely and rolling it into general fees, as well as changing billing from semi-annual to quarterly in order to lessen the financial impact on residents.

Bills are expected in early May but payments won't be due until June.