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James City Service Authority proposes rate increases as FY26 budget rises to about $30.7 million
Summary
JCSA presented a proposed FY2026 budget that would raise water and sewer fixed charges and volumetric tiers, increase CIP spending and appropriate $107,000 from reserves for a new retirement health account; a public hearing was held and no public speakers registered.
The James City Service Authority on April 8 presented a proposed fiscal year 2026 budget that would increase the agency’s combined water and sewer plan from roughly $28.6 million to about $30.7 million and raise customer rates.
At a public hearing, JCSA finance director/manager Mister Powell said the proposed FY26 budget includes roughly $5 million in water capital improvement program (CIP) spending and about $2.5 million in sewer CIP, largely for distribution and consent-order sewer system improvements. Powell said the FY26 increase reflects a $1,000,000 grant that is part of the larger budget picture.
Powell told the board the authority is proposing one amendment to appropriate $107,000 from undesignated reserves to seed a new retirement health account. He also said JCSA’s revenues come “solely from the fees and charges that are paid by our customers.”
The proposal would increase fixed monthly water charges for a 5/8-inch residential meter from $7.52 to $9.02 and raise the first-tier volumetric water rate from $4.20 to $4.45 per 1,000 gallons. The proposed sewer fixed charge would increase from $3.01 to $4.51; Powell said the sewer volumetric charge would remain at $3.14 through 2027 before increases in later years. Powell showed a table projecting that a typical 5,000-gallon-per-month customer’s combined bill would rise from $50.65 to $55.11 in FY26, an increase of $4.46 per month.
Powell said the authority’s financial policy requires a rate study every five years and that this year’s proposed rates align with that study’s recommendations. He described the authority’s tiered volumetric structure as a conservation measure and noted rating agencies encourage fixed charges to cover 25–30% of revenue, though JCSA has not yet reached that target.
Board members asked whether the side-by-side regional comparison Powell showed used current charges for other utilities; Powell replied the chart used each utility’s current charges and did not reflect projected increases elsewhere. Members also referenced other utilities’ distinct regulatory pressures such as lead-and-copper and PFAS, which Powell said some utilities face but JCSA does not.
The public hearing drew no speakers and the board closed the hearing with no immediate vote required. Earlier in the night the JCSA board approved a consent calendar that included a $563,983 contract award to Liberty Ridge for a water main extension and the annual water and wastewater construction and repair services contract; the consent calendar was approved by voice vote.
