Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Sewer Rates Fy26 topic
No spam. Unsubscribe anytime.
Montgomery County PSA board votes to advertise proposed FY26 water and sewer rate increases
Summary
The PSA board voted to advertise proposed FY26 rate increases — sewer from $10.55 to $11.95 per 1,000 gallons and water from $14.42 to $16.42 per 1,000 gallons — citing salary, purchase and O&M cost increases. The board approved advertising the increases on a 6-0 roll call.
The Montgomery County Public Service Authority voted at its May 5 meeting to advertise proposed fiscal year 2026 rate increases for water and sewer.
PSA staff presented a proposed sewer rate increase from $10.55 to $11.95 per 1,000 gallons and a proposed water rate increase from $14.42 to $16.42 per 1,000 gallons. Staff said the sewer increase reflects higher salary costs (including a 3% raise, two additional staff positions and off-cycle reclassifications), higher operation and maintenance costs tied to increased wastewater treatment volume, and miscellaneous cost increases such as insurance and repair. Staff said the water increase reflects higher purchase volume and a higher purchase rate after sourcing solely from the New River Valley Regional Water Authority, higher salary costs and higher debt service from a new payment.
"This is due to salary expense, off cycle increases, expense increase due to an increase in water purchase volume and increase in purchase rate," PSA staff said while presenting the water budget. The staff also noted a proposed 13.87% increase in the water rate (a $2 increase per 1,000 gallons).
Board discussion touched on revenue assumptions and staffing costs. One board member asked why metered sewer sales were budgeted up about 20% and whether the proposed 13% rate hike assumed the remaining 7% would come from increased usage (for example, from new connections). Staff said the majority of the usage increase was expected from new connections related to existing development projects.
The motion to advertise the rates was made and seconded during the meeting. The roll-call vote recorded six ayes: Graskey, Demontz, Fidjakowski, Biggs, Kitts and King. The board chair announced "6 ayes" and the motion to advertise passed.
Nut graf: Advertising the proposed rates starts the public-notice process; final adoption would follow public notice and any required hearings. The presentation also included a request for clarification on a one-time federal grant reflected in FY25 but not included in the FY26 draft; staff committed to check grant details.
Ending: The PSA did not adopt the rates at the May 5 meeting; it voted to advertise them and begin the public-notice period. Staff was asked to provide follow-up information on grant line items and salary assumptions.
