Caroline County to seek public comment on proposed 5% water and sewer rate increases and Dawn system fee change

Caroline County supervisors voted May 13 to send an updated water and sewer rate proposal to public hearing that would raise customer rates and availability fees while removing a general fund transfer to the utility fund.

The county-contracted consultant from Davenport Company recommended continuing 5% annual user-rate increases for 2026–2029 and increasing residential availability fees so each new connection would pay $14,000 for water and sewer combined. The consultant said those changes, paired with the county’s projection of 225 new customers per year, would allow the utility to cover recurring costs and fund about $1.3 million a year in cash-funded capital without drawing on the general fund.

The board’s decision matters because county staff told supervisors the projection is sensitive to new-connection volumes: if new connections fall well below 225 per year the system could need larger rate increases or debt financing to complete planned capital projects. The consultant identified two large capital projects — a Rappahannock River water treatment facility and the Polecat Creek interceptor — that could require about $9 million in borrowing if the new-connection revenue does not…