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CERCAP rate study: Smithsburg’s systems show operating surpluses but major CIP would require significant rate increases; council asks for a water-loss audit
Summary
CERCAP reported the town’s water system averaged roughly $434,000 net positive and sewer about $129,000 (2022–2024); a full capital program could require an ~83% water-rate increase. Council asked for a water‑loss audit and updated 2024 numbers.
Michael Harshrom, Maryland state lead for the Southeast Rural Community Assistance Project (CERCAP), presented a preliminary rate study that examined operating finances and modeled debt service for identified capital improvements.
Harshrom said the study found the water system averaged about a $434,000 net positive across 2022–2024 and the sewer system averaged about $129,000 over the same period. He warned that…
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