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County faces financial crisis over water and sewer costs

July 18, 2024 | Greene County, Virginia



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This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

County faces financial crisis over water and sewer costs
In a recent government meeting, officials discussed the financial implications of water and sewer operations in Greene County, highlighting a series of significant developments over the past two decades. The facility fee for water services was raised to $30 per month in 2021, coinciding with the initiation of a lawsuit against the Regional Sewer Authority (RSA). By 2022, the lawsuit concluded, and the RSA ceased the facility fee.

As of 2023, Greene County has taken over the water and sewer operations, with current estimates indicating that the average monthly cost for water services per household is approximately $60. This figure encompasses both operating and capital costs, with RSA previously billing around $25 per month, leaving the county to cover the remaining expenses.

The financial agreements between Greene County and RSA are substantial, with the county responsible for paying $7 million of RSA's debt, constructing a new wastewater treatment facility, and making significant upgrades to existing infrastructure. The total projected costs for these projects include $16 million for sewer upgrades, $2.5 million for engineering work on a new water plant, and $3.8 million for property acquisition for a reservoir, among other expenses.

Concerns were raised during the meeting regarding the sustainability of funding these operations. Officials noted that the county's current operating expenses are approximately $4.7 million, which exceeds the revenue generated from user fees. This discrepancy raises questions about the county's reliance on property taxes to cover the shortfall, potentially leading to significant increases in tax rates for residents.

The discussion also touched on the need to reassess user fees, which have not been raised since 2007. Officials emphasized that without adjustments, the burden of funding essential services may disproportionately affect long-term residents, particularly if property taxes rise sharply to accommodate the costs of new infrastructure projects.

As Greene County navigates these financial challenges, the need for a comprehensive understanding of operational costs and funding strategies remains critical to ensure the sustainability of its water and sewer services.

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