Leesburg staff outline billing transition after annexation; county to make $2 million annual payment

Amy Weitz, the town's director of utilities, told the Leesburg Town Council the town has completed planning to implement billing changes required by a voluntary settlement agreement tied to a recent annexation.

Weitz said the settlement, finalized in January, transitioned Compass Creek accounts to in‑town status and that, beginning July 1, out‑of‑town accounts included in that annexation will be charged in‑town water and sanitary sewer rates rather than out‑of‑town rates. “Effective July of this year, the out of town accounts will be charged in town rates instead of out of town rates,” Weitz said.

The change is intended to be offset by an annual economic development payment from Loudoun County. “Part of the settlement agreement includes a $2,000,000 economic development incentive payment from Loudoun County and subsequent years will be with a 3 percent escalator,” Weitz said. She said the county is expected to submit the first payment on or before July 1.

Weitz described the town's customer communications and billing rollout. The town mailed a welcome letter to annexed customers on Jan. 1; it plans additional outreach, including a mayoral letter later this month and a utilities follow‑up in mid‑May explaining billing through June 30 and the new billing schedule beginning July 1. The utility bill for services through June 30 will be sent June 30, Weitz said.

To help customers understand charges, town staff plan to add credit/adjustment lines and explanatory wording to the front and back of the utility bill. Weitz said the back of the bill will continue to show out‑of‑town rates “because in the event that the county does not make the economic payment, out of town rates would be billed.”

Council members asked for clarification about the county payment timing and whether the first payment is the full $2,000,000. A staff speaker confirmed, “Yes. That is correct. There’s no iterative element to the county economic development payment. It’s a lump sum paid on or before July 1 of each year.”

Council member Nicholas Kerkowski asked whether accounts would revert to out‑of‑town rates if the county failed to make the payment; Weitz replied, “If the county does not make the economic incentive payment… then all of the accounts will revert back to out of town rates.”

Weitz said staff are developing quarterly reconciliation procedures to track the county payment relative to the rate differential and plan to report progress periodically to the council.

The presentation did not include a council motion or formal vote; council members thanked staff and indicated interest in follow‑up reporting.