Montgomery County PSA approves about 13% increases to water and sewer rates, adopts 2026 budgets

The Montgomery County Public Service Authority voted June 2 to approve a resolution setting new water and sewer rates effective July 1, 2025, and adopted the authority’s fiscal 2026 wastewater and water budgets.

The authority approved a proposed water rate increase of 13.87%, raising the charge from $14.42 to $16.42 per 1,000 gallons, and a proposed sewer rate increase of 13.27%, raising the charge from $10.55 to $11.95 per 1,000 gallons. The board also voted to adopt the fiscal year 2026 wastewater and water budgets during the same meeting.

Why it matters: the rate and budget actions affect customer bills and the PSA’s ability to meet debt-service and operating requirements. Staff attributed most of the increases to higher personnel costs, increased operations-and-maintenance expenses, higher purchase rates from a regional supplier and a new debt payment.

Staff outlined the drivers behind the increases. A staff presenter said water rate increases were…