METCOM outlines FY26 capital improvement program, flags $2.4 million sewer increase after expected grant fell short

METCOM Executive Director (name given in presentation as Mr. Erickson) and Chief Financial Officer Patty Stigman presented the Metropolitan Commission's recommended fiscal year 2026 capital improvement budget and a six‑year plan to the Commissioners of St. Mary's County on April 22, 2025. The package divides projects into water and sewer categories and includes project detail sheets, anticipated funding sources, and a schedule that the commission said will proceed to a joint meeting with the county on May 20, 2025 to seek approval.

The commission described water projects for FY26 as largely on plan, about $150,000 higher than projected in last year’s program, while sewer programming increased by about $2,400,000 compared with last year. "If you think you're gonna get grant funding, don't show it as grant funding," Mr. Erickson said, recounting the experience the commission had when expected Bay Restoration Fund (BRF) support did not materialize; "so always assume worst, and if you get a grant, come back with the great news." Patty Stigman said, "At the end of fiscal year 26 we have budgeted debt of $141,000,000 but in actuality we only borrow as cash flow warrants." The planning commission previously found the CIB consistent with the comprehensive plan on March 24; METCOM held a public hearing April 15.

Why it matters: METCOM's capital plan guides water and sewer infrastructure spending and debt levels that affect future rates, capacity for new development, and the timing of projects that can resolve longstanding service problems in portions of the county.

Key financial and program details - Sewer vs. water: METCOM reported FY26 water projects are essentially on target while sewer project programming rose by about $2.4 million compared with last year, mainly because BRF support the commission expected did not come through for certain projects (Erickson). METCOM said it reprogrammed approximately $3.5 million after the expected BRF award failed to materialize for at least one project. - Debt and borrowing: Stigman said the commission budgets a notional $141 million of debt for FY26 but typically borrows as cash flow warrants and historically maintains about 86% of budgeted borrowing. METCOM said it retires about $8 million of debt per year and described its 10‑year principal and interest payout ratio as roughly 67% (higher than a cited industry norm of 40%). The commission noted a statutory/charter cap in county code (chapter 113) that it described as $235,000,000. - Rates and customer charges: METCOM said the proposed operating changes translate to a system improvement charge that averages about $33 per month for customers (an increase of roughly $1.73 per month). Proposed usage rate changes are modest: about a 2.7% increase for sewer and about 2.1% for water. METCOM reported average residential monthly usage around 5,000 gallons. - Capital contribution charges and EDUs: METCOM noted water capital contribution charges have not been raised since 2017 and remain just over $10,000; sewer increases were minimal for FY26. Commissioners discussed EDU (equivalent dwelling unit) availability and transfer mechanisms; METCOM said there are EDUs available in Marley Taylor for large projects but cautioned that large single projects could consume remaining capacity.

Project highlights and schedule - Saint Clement Shores wastewater work: METCOM said the Saint Clement Shores project should be bid in May, with bids on the street for roughly eight weeks and MDE approvals to follow. The presentation referenced added funding (figures ranged in discussion from roughly $3.0 million to $3.7 million) to extend sewers and upgrade lines in the area to reduce per‑customer connection costs for special taxing districts. - Piney Point pump station and force main: METCOM discussed Piney Point force main eligibility for BRF and a decision to reprogram budgeted funds when BRF points did not secure the grant. The Piney Point wastewater pump station project remained on the CIB and was described as one of the last projects to retire older budget authorizations. - AMR to AMI metering pilot: The commission proposed piloting gateway devices on existing water towers (Hickory Hills and Wildwood) to move from drive‑by reads (AMR) to real‑time automatic meter infrastructure (AMI). METCOM said existing meters and registers can transmit digital signals and gateways would allow earlier leak detection and faster billing cycles; commissioners were told per‑gateway costs including installation are roughly $20,000 each and full installation cost per tower about $50,000. - Spring Valley Drive sewer replacement: METCOM removed a previously listed project after televising the line and finding no deterioration; the line was judged to have about 30 years of useful life.

Capacity, equity and rural service tradeoffs Commissioners pressed METCOM on affordability and geographic equity. METCOM representatives said a large share of customers — estimated at 75–80% — are concentrated in central Lexington Park/California areas (the county's more urbanized center), while rural service is more expensive to provide per customer. METCOM said it considers affordability impacts both countywide and at a more localized Lexington Park level when setting contribution charges.

Follow‑up and next steps METCOM invited commissioners to tour major facilities, including the Hickory Hills water tower, Marley Taylor wastewater treatment plant and the Great Mills pump station. METCOM indicated the joint meeting to seek formal commissioner approval of the CIB is tentatively scheduled for May 20, 2025. Staff also said they will update project tabs and cost estimates and return with additional information on specific projects and debt timing.

Ending: Commissioners did not take a formal vote on the CIB during the April 22 presentation; METCOM will return for formal action at a future joint meeting. METCOM asked commissioners to email or call with follow‑up questions and offered to brief them on specific project sheets in the tabbed package provided to the board.