WSSC proposes 9.8% revenue increase for FY26; boosts PAYGO, customer aid

WSSC Water presented its proposed fiscal year 2026 operating and capital budget to the Prince George’s County Transportation, Infrastructure, Energy and Environment Committee on April 10, 2025, outlining a proposed revenue enhancement of 9.8 percent and a combined operating and capital program of about $1.8 billion.

The proposal would increase volumetric water and sewer rates and fixed charges, raise the system development charge by 2.5 percent, and fund expanded affordability programs. “The commission has proposed a budget with a 9.8% revenue enhancement,” WSSC Chief Financial Officer Masar said during the briefing.

The nut of the budget is a larger operating program while the capital budget declines after project re-baselining. WSSC staff told the committee the combined operating-and-capital total is about $1.8 billion, roughly $21.7 million (1.2%) above FY25 when operating and capital are combined. On the capital side, staff described an 11.9% decrease driven by re‑baselining projects and removing historic completion-factor padding.

Why it matters: WSSC said the 9.8% proposal is intended to protect its bond rating and lower long‑term debt costs by sharply increasing PAYGO (pay‑as‑you‑go) funding for capital…