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Hagerstown staff propose 4‑tier water and wastewater rate structure; residential bills generally fall while large commercial users may pay more
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Summary
City staff and consultant presented a 4‑tier inclining block alternative for water and wastewater rates that keeps fixed fees by meter size, aims for revenue neutrality in year one and projects a 3% wastewater/5% water revenue increase over five years; staff said most residential customers would see decreases while large nonresidential users could face double‑digit increases.
City wastewater and utility staff, joined by consultant Connor Turgis, presented a proposed four‑tier inclining block rate design for wastewater at the April 21 work session, a companion to water rate changes the council reviewed last month.
Turgis explained the alternative retains quarterly or monthly fixed fees that vary by meter size but replaces the current single volumetric rate with tiered blocks: 0–9,000 gallons, 9,000–18,000, 18,000–36,000, and greater than 36,000 gallons. “This alternative maintains the same fixed fee structure but moves usage fees to a 4‑tier inclining block rate,” Turgis said. Staff said that, under the proposal, most residential customers would see no increase or even a reduction in their wastewater bill because lower tiers are priced below the current single rate.
By contrast, staff warned that large nonresidential customers that consume high volumes would face larger percentage increases under the tiered design. Staff showed examples: a typical residential inside quarterly bill under the example would drop from about $138 to about $117 (a roughly $20 decrease), while a large nonresidential customer (approximately 450,000 gallons per quarter) could see a roughly $890 increase — about 24 percent — under the proposed structure.
Nancy (city wastewater staff) and other staff explained a new customer classification, “inside joint,” to cover subdivisions whose collection lines are inside city limits but whose wastewater is treated by the county; those customers would be billed with fixed fees and volumetric tiers roughly 30 percent higher than inside‑city customers to reflect the county wholesale treatment cost. Staff said these inside‑joint customers (Hager’s Meadow was cited as the first example) currently lack a rate and will be added to the system under the JSSA amendment process.
Staff emphasized the plan is designed to produce a roughly 3 percent overall wastewater revenue increase and a 5 percent increase for water over a five‑year period, with the first‑year adjustments generating most of the change. They recommended the council authorize an ordinance introduction and a public hearing; staff said they expect to have ordinance language and hearing dates prepared for May.
Several councilmembers asked for clearer tables showing where the various joint and outside classifications fall on the example charts and asked staff to supply supplemental charts for the council packet. Staff agreed to add missing customer classification lines and provide additional detail on billing for borderline cases and for fire‑line meters. The council indicated a preference to proceed with the four‑tier alternative and scheduled ordinance introduction and a public hearing in May.
