Council approves water, sewer and sanitation rate increases; landfill and residential collection fees to rise

The Fredericksburg City Council approved multiple ordinance amendments changing municipal utility and solid-waste fees, including a 5% increase to water and wastewater rates, a hike in landfill tipping fees from $85 to $100 per ton, an increase in the monthly residential collection fee to $15.40 (a $1.40 monthly rise), and tiered increases to the city's drainage utility fee.

Staff justification and process
City staff said the 5% water-and-wastewater increase (Ordinance 2025-29) is intended to keep pace with rising materials and operating costs and to fund a planned water/wastewater master plan update and a subsequent rate study. Staff noted the last water/sewer increase was in October 2023.

Landfill and residential collection
The council approved an increase in the landfill tipping fee (Ordinance 2025-30) intended to curb out-of-county commercial deliveries; staff said commercial haulers made up roughly 70% of current landfill tonnage and the city's previous hike from $55 to $85 per ton two years ago already reduced outside tonnage. For residential customers, the council approved Ordinance 2025-31 raising monthly curbside collection to $15.40; staff said surrounding cities average higher monthly charges (about $24'$25 per month). The city also confirmed a continuing annual free voucher program for residential customers to dispose of household bulk items.

Drainage utility and future changes
Ordinance 2025-32 raises drainage utility fees and adjusts the tiered structure adopted in 2019 to better align residential and nonresidential allocations; staff said the highest nonresidential tiers apply to very large users and will affect few accounts.

Capital plans and grants
Staff and the council discussed a planned transfer station meant to reduce landfill expansion. Staff said the city has applied for a $4,800,000 grant to fund the transfer station and expects notification in December; if awarded, that grant would reduce the need to fund the transfer station entirely from local rates. Staff noted recent landfill cell construction (cells 12 and 13) will have an estimated combined useful life of about 3.5 years at current tonnage rates.

What the council did
The council adopted the four rate ordinances as presented in separate votes. Councilors said they prefer to move the rate package forward as a single step rather than incrementally.