WSSC Water proposes $1.833 billion FY2026 budget; council presses utility on high-bill complaints

WSSC Water on Thursday presented a proposed $1,833,000,000 budget for fiscal 2026 that includes a $1,136,000,000 operating budget and a $715,500,000 capital budget and asks the Council to consider a 9.8% revenue enhancement. The presentation to the Transportation, Infrastructure, Energy and Environment Committee highlighted expanded customer assistance, a push to increase PayGo funding, and regulatory compliance costs.

The budget “continues to utilize our outcome based budgeting approach,” WSSC Chief Financial Officer Maneta Timothy Musara told the committee, citing priorities that include protecting public health, increasing PayGo to fund capital projects, and maintaining a triple-A bond rating. Musara said the operating budget is about $160 million higher than FY2025 while the proposed capital budget is about $95 million lower than last year’s approved capital program.

Musara said the FY2026 proposal increases customer-assistance funding by $8,900,000 (a 14% increase) and includes nearly $34,000,000 allocated to replace customer-owned lead service lines. The six-year capital improvements program relies on roughly $3.3 billion in bonds, $1.0 billion in PayGo and $500 million in external funding; about $1.28 billion of projects in that six-year CIP are described as mandated.

General Manager and CEO Keisha Powell said WSSC has retained a triple‑A rating with a stable outlook and described steps to hold contractors and consultants accountable when projects run long or create community impacts. “This is the impacts that, our communities, our neighbors have experienced in this work is not what we want to see,” Powell said, describing town‑hall meetings and plans for independent reviews of multi‑year road‑impact projects such as Osborne Road and Bonemill Road.

Council members pressed WSSC on two recurring local concerns: unexpectedly large residential water bills and the pace and quality of contractor work on water and sewer projects. Council member (Vice Chair) Harrison asked for specifics about the sewer and water service‑line repair loan program, and Powell said the primary eligibility route is through the income‑based customer assistance program and partner organizations.

Council members asked WSSC to return with more detailed analyses of high‑bill complaints and metrics on contractor performance. Musara said WSSC is reviewing federal regulatory developments — including the lead and copper rule and anticipated PFAS standards — and is preparing a comprehensive PFAS management strategy; the utility also flagged rising non‑discretionary costs such as biosolids management and Blue Plains treatment charges from DC Water.

The committee was informed the staff will present a formal staff report on the WSSC proposed budget at the committee’s next meeting, scheduled for April 10, 2025.

WSSC officials provided the committee with a list of customer‑facing affordability programs included in the budget: Promise Pay (flexible, interest‑free payment plans), a customer assistance subsidy enhancing usage discounts and waivers of some fixed fees, a plumbing‑repair assistance program administered by Habitat for Humanity, and a pipe emergency repair loan program providing up to $10,000 for eligible repairs. Musara said Get Current 2 was launched in March to help delinquent commercial customers clear arrears with credit incentives and payment plan options.

Powell and Musara emphasized efforts to increase PayGo funding to improve debt ratios and reduce future rate pressure; Musara said using PayGo “improves debt ratios, saves on debt service costs, slows the accumulation of long‑term liabilities” and supports the AAA rating.

The committee did not take a vote on the budget proposal during the presentation; staff will bring a recommended staff report and any proposed council actions at the April 10 meeting.