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Calvert County work session outlines proposed water and sewer rate increases, projects to shore up utility funds
Summary
Public works and consultant presented a rate study recommending a combination of rate increases and use of cash to meet capital needs, including a two‑year higher sewer increase and ongoing distribution and treatment‑plant projects; commissioners discussed long‑term planning and affordability concerns.
Calvert County Department of Public Works briefed the Board of County Commissioners at a May 13 work session on a multi‑year water and sewer rate study that proposes modest annual water increases and larger near‑term sewer increases to stabilize utility finances and fund planned capital projects.
JR Cosgrove, director of public works, introduced the presentation by NextGen Solutions consultant Mike Maker and said the guiding principle is that the water and sewer enterprise fund should be self‑supporting and maintain at least 180 days of operating expenses in reserve. The study assumes capital projects will be funded with a mix of cash and debt and uses a planning assumption of 3 percent interest and 25‑year maturities for debt-funded projects.
For water, the study models a suggested 3 percent annual increase in user revenue through FY 2031. For sewer, the proposal modeled two years of 9 percent increases followed by three years of 3 percent increases. The consultant presented sample bills showing a median combined residential customer bill rising from about $262 per quarter to roughly $281 per quarter under the modeled increases, a combined change of roughly 7 percent for the median user.
The presentation listed planned projects the rate increases would support: distribution‑system replacements in older communities (including Shores of Calvert and Dares Beach), phased replacements in other areas, an annually funded water‑station improvements program, sewer-collection rehabilitation, upgrades at Prince Frederick wastewater treatment plants, completion of a biosolids upgrade, a countywide sewer pump‑station program, and design work for potential sewer extensions in North Beach and Dares Beach. The county is also planning a new water/sewer maintenance building.
Public‑works and finance staff said the recommended approach uses a mix of rate increases and limited use of cash to avoid sudden jumps while restoring the fund’s cash balance; staff showed that water cash balances would decline under the model while the combined utility would move toward the 180‑day target.
Commissioners asked about the feasibility and cost of expanding public water to areas with failing wells or septics. Staff said those extensions are technically feasible but expensive and often require standalone systems or significant infrastructure and land for storage and treatment. The presentation also included a snapshot of the customer base: roughly 5,600 metered customers, about 90 percent residential.
Several commissioners urged the department to present longer multi‑year parameters so the board could avoid annual rate deliberations; county finance staff said the model is built for five years and could be used to set a multi‑year plan with guardrails, with staff returning if circumstances change.
Cosgrove and the consultant recommended proceeding with the modeled increases; the proposal is incorporated in the draft FY 2026 budget and will return to the board for formal action as part of the budget process.
