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Committee backs WSSC's FY26 budget proposal, staff to return on CIP details
Summary
WSSC Water presented a $1.833 billion FY26 budget, including a proposed 9.8% revenue enhancement that the committee supported 'without objection'; staff highlighted investments in customer assistance, lead service‑line work, PFAS monitoring and increased PAYGo to shore up long‑term finances.
WSSC Water's finance team asked Montgomery County's Transportation and Environment Committee on April 24 to endorse its FY26 operating and capital plan, which the utility framed as balancing required regulatory investments and customer affordability.
Nunez Timothee Musara, WSSC's chief financial officer, told the committee the combined FY26 request totals $1.833 billion with a $1.136 billion operating budget — about $116 million above FY25 — and a proposed 9.8% revenue enhancement for FY26 that the utility estimates would raise an average household's quarterly bill by about $26.41 (roughly $105.64 per year). Musara said priorities in the plan include expanding customer assistance (a roughly 14% increase), funding customer‑side lead service‑line replacement, preparing for forthcoming federal limits on PFAS by expanding lab capacity, and increasing PAYGo to improve debt metrics.
County staff reviewed packet details and stressed two large drivers of the proposed increase: a substantial PAYGo increase (roughly $42–43M) intended to shore up debt ratios and a rise in regional sewage disposal charges the utility does not control. Committee members questioned which PAYGo levels would be sustainable and whether some vehicle or noncritical outlays could be deferred; WSSC staff said PAYGo targets remain under analysis and that a final recommendation on a long‑range target would be available after consultants complete a review.
Chair Glass and multiple council members said they were persuaded by the presentation and the need to maintain system reliability. "Ultimately, again, this is all about safe and clean drinking water and making sure that our residents have access to it and are healthy," Chair Glass said. After discussion, the committee indicated support for the WSSC recommendations "without objection."
The committee asked staff to continue work on the long‑range financial plan and on clarifying impacts of regional sewage charges and PAYGo choices. WSSC and county analysts said they will return with additional modeling and detail as the budget process continues.
Next steps: The committee's endorsement moves the WSSC proposals forward in the county's FY26 budget process; staff said further long‑range debt and PAYGo analysis will be provided in follow‑up briefings.
