Chesapeake Beach approves $335,000 in temporary water-and-sewer relief and funds $100,000 rate study

Chesapeake Beach — The Town Council voted to adopt two emergency ordinances authorizing short-term relief for water and sewer account holders and to fund a professional rate analysis, the council announced at a special meeting. The council approved a temporary 20% credit for qualifying water and sewer accounts for the third and fourth quarters of fiscal year 2025 and established a new line item of up to $100,000 to pay consultants for a full utility fund and rate analysis.

The actions put $335,000 toward temporary customer credits and authorized up to $100,000 for outside professional services to review the town’s water and sewer rate structure and utility management. Councilman Schulz, who sponsored the ordinance, described the package as the short-term relief and a second phase “to do the water and sewer audit, the full scale.”

Why it matters: Town leaders said the steps are meant to give immediate relief to customers while hiring consultants to recommend a longer-term, sustainable billing and rate structure. Councilmembers emphasized caution about rushing a full rate-structure change and asked consultants to prioritize analysis that informs the FY2026 budget cycle.

What the council approved and how it was changed - Emergency ordinance EO-25-02 amended the Utility Fund budget to provide temporary relief for water and sewer account holders (20% credit for Q3–Q4 FY25) and to create a new professional-services line item not to exceed $100,000 for a comprehensive rate and utility analysis. Councilman Schulz introduced the ordinance. Councilwoman Blackwater moved an amendment to remove specific reference to “for fiscal year 2025” from the ordinance title and related language so the vendor could be asked to produce analysis to inform the FY2026 budget cycle as needed. The council approved the amendment by voice vote and adopted the amended ordinance by voice vote.

- Emergency ordinance EO-25-03 amended the General Fund budget to transfer funds to the Utility Fund to support the same temporary relief and consultant contract. Councilmembers moved and approved an identical amendment (striking the specific “FY2025” language) before adopting the ordinance by voice vote.

Amendments and clarifications: Councilmembers also edited the ordinance text to reorder a clause so the consultant’s scope reads “including but not limited to assessing water and sewer operational costs,” followed by a list of deliverables: an in-depth utility fund and rate analysis; utility fund management recommendations; billing recommendations; an EDU (equivalent dwelling unit) audit; a comprehensive infrastructure evaluation; updates to the town water and sewer manual; and capital-connection recommendations. The amended language places the listed tasks at equal priority rather than subordinating them to an assessment of operational cost.

Consultant presentation scheduled: The council heard a public presentation by NewGen Strategies (Mike Maker and Nick Short), one of the firms responding to the town’s request for consulting on a water and sewer rate study. NewGen outlined industry trends — rising capital costs, regulatory pressures and declining per-household water use — and described a two-part product the town can expect: (1) a revenue-requirement financial model (10-year projection) to show the town’s baseline operating and capital costs and identify whether current rate structure covers those costs; and (2) rate-design alternatives (sample bills and customer-class impacts) to show how different structures would affect representative users. NewGen representatives said they expect to deliver an initial revenue-requirement estimate within a few weeks to inform the FY2026 budget process, and that structural changes that require billing-system updates would likely take longer (summer timeline for detailed bill simulations and alternative packages).

Council concerns and directions: Councilmembers asked consultants to prioritize results that can inform the immediate budget cycle (FY2026) without forcing rushed structural changes at implementation. Several members requested the consultants provide: (a) a small set of clearly differentiated alternative rate designs, (b) sample-bill calculators so residents can see household-level impacts, and (c) recommended updates to the town’s water and sewer manual and EDU policies. Staff and council emphasized they want the final work product to be a living Excel model the town can use in future years.

Public comment and related items: A resident, Debbie Buckingham, spoke during public comment and raised concerns about past EDU charges and requested refunds; she said she would file supporting documentation. The town administrator and treasurer said they had received that communication and would review outstanding account issues separately from the emergency ordinance vote.

Votes at a glance - EO-25-02 (utility fund amendment; credit + professional services not to exceed $100,000): adopted as amended (voice vote; “ayes” recorded; no roll-call tally in the record). - EO-25-03 (general fund amendment; transfer to utility fund): adopted as amended (voice vote; “ayes” recorded; no roll-call tally in the record).

Implementation next steps: Town staff and the consultant will work on a timetable that balances timely analysis for FY2026 decisions and the need for a thorough audit and rate-design process. Consultants requested detailed per-customer usage data to complete simulated bills; the council urged staff to deliver that dataset promptly.

Provenance: The council introduced and debated EO-25-02 at the emergency meeting and completed the vote after a series of amendments; the transcript includes the ordinance text and the motion-and-vote sequences.