Amherst County Service Authority reviews financial outlook, considers levelized rate increases and benefit changes

Good afternoon. The Amherst County Service Authority on April 1 heard a detailed financial presentation from Davenport & Company outlining capital-improvement needs, debt assumptions and three rate scenarios for water and sewer service that staff say would preserve debt covenants and liquidity.

Davenport & Company financial advisor R.T. Taylor told the board the authority now has a full fiscal-year (June 30) set of audited results for 2024 and that the authority’s master plan identifies roughly $11.5 million in short-term projects and about $29–30 million in longer-term needs spread over years six through ten. The short-term total includes an advanced metering infrastructure (AMI) project estimated at $2.7 million. Taylor said the firm modeled three scenarios: a conservative plan that retains current interim proceeds; a base plan assuming roughly $12.8 million of debt issuance over the next three years but no development revenue; and a development-supported plan that assumes new revenues and county contributions tied to the Gateway sewer project. Under the base scenario, the model would levelize water rate increases at about 9% beginning in fiscal 2026 and sewer increases near 10% until 2029, then tapering to lower levels in subsequent years. If development revenues and county contributions materialize, modeled increases would be somewhat smaller.

Why it matters: the authority must satisfy a…