Bel Air proposes 2.9% sewer rate bump tied to CPI; county treatment charges remain uncertain

Town staff told the Bel Air Board of Town Commissioners during the May 13 budget work session that the sewer fund budget for FY2026 includes a sewer‑rate increase tied to the December 2024 Consumer Price Index.

“This would be effective 07/01/2025,” Lisa said and explained the mechanics: the town code contains a CPI provision that allows an automatic increase, and the proposed change is a 21¢ increase — from $7.29 to $7.50 per 1,000 gallons — a 2.9% adjustment tied to the December 2024 CPI figure.

Why it matters: sewer service charges are the largest revenue source for the sewer enterprise fund and fund operations, repairs and scheduled capital work. Staff projected sewer service charge revenue of about $3.05 million for FY2026 under the CPI adjustment.

Commissioners focused on one major uncertainty: Harford County’s wastewater treatment rate. The town pays the county to treat Bel Air sewage, and county charges typically arrive in November or December and are retroactive to July 1. Director Moody (staff) and Lisa told the board the town has limited ability to predict the county’s final rate at budget time and that a material county increase could force additional rate adjustments after the budget is adopted. Director Moody said staff prefers to wait for county figures before recommending further changes beyond the CPI adjustment.

Further discussion addressed expenditures: the sewer fund budgets two full‑time employees’ salaries, utilities for pump stations, routine sewer maintenance and occasional main and lateral repairs. Steve Klein, public‑works staff, noted an engineering line item of $160,000 for upgrades to the Kelly Avenue pump station; staff said that project is being placed on hold until the county’s rate is known because the town could defer that expense if revenue is insufficient.

Board members also reviewed other sewer‑fund items: connection and user‑benefit fees are pass‑throughs to Harford County, the fund reports about $434,000 in allocated general‑fund overhead and a final inflow‑and‑infiltration debt service payment that will mature on June 5, 2027.

Ending: Staff recommended the CPI increase be applied July 1, 2025 and said they will return with any necessary rate changes after the county publishes its treatment rates later in the year.