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Nelson supervisors discuss six-year phase-in for Piney River water and sewer rates; public hearing to be set
Summary
After staff outlined multiple five- and six-year rate-phase scenarios for the Piney River system, the Board directed staff to continue work with the Service Authority, to advertise proposed changes and to schedule a public hearing in September or October ahead of a potential Jan. 1, 2026 effective date.
Nelson County staff presented multiple multi-year scenarios July 8 for bringing Piney River water and sewer rates closer to Service Authority levels and the Board directed staff to continue work with the Service Authority and to schedule a public hearing in the fall.
"As of March 2025, there were 206 customers," County Administrator Candice W. McGarry told the Board, giving a system breakdown of five water-only customers, 18 sewer-only, 83 sewer customers with grinder pumps, and 100 customers using all three services.
Staff showed five- and six-year phase-in models. One six-year scenario with a 2% per-year inflation factor would begin with a year-one minimum monthly charge of $82.70 for customers with grinder pumps and $70.99 without; a year-two example in that scenario showed $98.84 with a grinder pump and $84.13 without. The work group also flagged other fee considerations (yard hydrants, unauthorized use fees, reconnect fees and grinder-pump misuse fees) and advised identifying an operational “break-even” rate for the worst recent year.
Board members debated the pace and fairness of increases. Dr. Jessica L. Ligon said she favored identifying a break-even rate and achieving it quickly: "I would like to achieve that break-even point within the first two years." Supervisor J. David Parr pressed for a more gradual schedule to reduce near-term burden on households, while Chair Ernie Q. Reed warned that slower increases could leave residents facing steeper adjustments later.
Board members discussed whether connection fees should be raised—the Piney River connection fee is $2,000 compared with $4,000 elsewhere in the County—and whether a grinder-pump maintenance or education program could reduce failures and long-term costs. McGarry said staff planned a follow-up work-group meeting with Service Authority staff and recommended advertising proposed rates and ordinance changes for a single public hearing to provide adequate notice to customers ahead of any effective date.
Supervisors indicated support for a six-year transition plan in concept and asked staff to present draft rates and ordinance edits for public hearing in September or October, with a potential effective date of Jan. 1, 2026, subject to the Board’s later action.
