City staff proposes 10% water rate increase to cover aging infrastructure, Turnpike relocation

Brandy (staff member and budget presenter) told the Leesburg City Commission on July 15 that the water fund is projecting about $14.7 million in cash and staff is proposing a 10% rate increase for fiscal year 2026 to cover aging infrastructure and rising treatment costs. "We are projecting 14,700,000.0," Brandy said, and she described the 10% increase as targeted at infrastructure repair and higher treatment costs.

Brandy said the fund's required reserve is about $3.8 million and current projects in the budget total roughly $4.6 million; staff plans to use approximately $1.8 million of fund balance in FY26. She noted a prior rate study dated February 2014 was not implemented and that the city has not done a recent full rate study.

The presentation listed current and proposed capital projects. A Turnpike widening relocation is at about 90% design and staff said the relocation is required by the state because the turnpike widening and new ramps will require moving utilities. Other projects include an elevated-tank inspection program, ongoing work toward an upgraded Maine water treatment generator (said to be arriving before hurricane season), a 12-inch main replacement on Bentley Road, and the Stock subdivision project to move aging mains from the rear of lots to the front to address low fire flow.

Commissioners asked clarifying questions about the Stock subdivision scope and whether the main generator was at the water treatment plant; Brandy confirmed it was the plant generator. No formal rate change was adopted at the workshop; the 10% increase is a staff proposal that will return to the commission in a future rate resolution.

The presentation emphasized that, even with a proposed increase, Leesburg's water rates would remain among the lower rates in the region, according to staff comparisons.