Wilmington proposes 6.5% water/sewer, 6% stormwater increases as part of $413M six‑year plan

Wilmington City officials proposed a multiyear financial plan on April 24 calling for a 6.5% increase to water and sewer rates and a 6% increase to stormwater rates for fiscal 2026 as the utility seeks to fund operating costs, rising debt service and a $413 million capital improvement program.

The six‑year plan, presented by Public Works and consultant Black & Veatch, projects FY2026 operating costs of roughly $80.5 million and total debt service rising from $22.9 million in 2026 to about $37.5 million by 2031. To manage the near‑term gap, the plan relies on state revolving fund (SRF) loans and principal forgiveness, bond financings, limited cash financing in later years and a partial draw from the city’s rate‑stabilization reserve.

Why it matters: The utility must balance regulatory mandates, aging infrastructure and emergent costs — including PFAS compliance and lead service‑line work — while limiting immediate rate shock. Commissioner of Public Works Kelly Williams said the plan is intended to “build long‑term financial resilience” while meeting required reserve and debt‑coverage metrics.

Black & Veatch summarized revenue and expense drivers: retail water, sewer and stormwater revenue under existing FY2025 rates would generate about $71.5 million annually from retail customers, while wholesale wastewater…