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Council presses town on water-bill impacts as staff proposes 7.25% utility rate increase
Summary
As officials proposed a 7.25% water and sewer rate increase and a $2 quarterly rise in the fixed service charge, councilors urged staff to identify relief for low-income and fixed‑income households. Staff said the town will refer eligible residents to Community for Helping Others and is studying targeted assistance options.
Town staff told the council the utility rate package proposed in the FY2026 draft budget would raise combined water and sewer charges by roughly 7.25%, driven mainly by Fairfax Water and contract increases. The proposal also increases the fixed quarterly service charge from $40 to $42.
Council members expressed concern about the distributional effects of a fixed service charge on low-usage, fixed‑income households. “They’re using less water… and they are being charged equally as a multimillion‑dollar home,” Council member Baldwin (speaker 10) said, urging the town to ensure relief reaches residents who cannot afford rising utility costs.
Staff said the town will continue active referrals to Community for Helping Others (CHO) for residents who consent to be connected; CHO has indicated a willingness to assist. Finance reported a preliminary estimate that subsidizing water for all residents currently qualifying for real-estate tax relief would cost roughly $100,000–$120,000 annually. Officials also described a proposed future rate study to examine alternatives to the current fixed‑plus‑volumetric structure.
Why it matters: a higher fixed charge disproportionately raises bills for low-usage customers; councilors requested clearer options to help vulnerable households and asked staff to return with concrete budget numbers and potential program designs.
Next steps: staff will follow up with an itemized list of assistance options, circulate comparative local tax and utility structures upon request, and schedule a rate‑study timeline.
