Utility rate study recommends multi‑year increases; Board schedules April public hearing

The James City Service Authority (JCSA) and the Board of Supervisors reviewed a rate study Wednesday that recommends a phased program of water and sewer rate increases and updates to facility fees to meet ongoing operating and capital needs.

Andy Burnham of Stantec presented results of the study. The analysis updated operating‑cost and capital forecasts and recommended a combination of usage (variable) rate increases and modest increases to monthly fixed charges designed to improve revenue stability. For water, the study recommended 6% variable increases in the near term followed by smaller increases in later years and $1.50 increases in fixed monthly fees spread over three years. For sewer, a smoothing approach reduced near‑term variable increases and recommended increasing fixed monthly charges by $1.50 in the near term. The combined effect for a typical residential customer using about 5,000 gallons per month was presented as roughly a $4.50 monthly bill increase in FY2026 under the proposed schedule — lower than an earlier draft shown at the board retreat.

Burnham cited higher commodity costs and personnel costs since 2022 and said while inflationary pressures have eased the utility still faces elevated operating and capital costs. The study also recommended updating facility (connection) fees to reflect current unit costs; Stantec’s analysis would raise a typical combined water and sewer residential facility fee by about 15% (roughly a $1,000 increase for a typical residential connection in the consultant’s table).

General Manager Powell said staff will post explanatory notices on the utility website and include a link on customer bills; the board moved to advertise the proposed rates and schedule a public hearing for April 8. The motion to advertise the FY2026 rate schedule and related fee changes (including a proposed grinder‑pump maintenance fee increase to $4.75 and a new $200 abandonment inspection fee) passed on a roll call with all members voting aye.

Why it matters: The recommended changes aim to match revenues to projected operating and capital needs and to keep reserves within target ranges while smoothing customer impacts across several years. The board’s vote sets the formal public‑notice process in motion.

What’s next: The county will advertise the proposed rate schedule and hold a public hearing on April 8. Staff will continue outreach by mail, email and social media and will return with final rates for adoption after the hearing.