York County considers commercial fixed charge and phased residential increases to shore up sewer fund

York County supervisors heard a year-long sewer rate study on March 19 that recommended a structural change to commercial billing and a measured, multi-year approach to making the sewer utility self-sustaining.

Christy Troy of financial adviser PFM told the board that residential sewer rates were last adjusted in 2021 and commercial rates more than a decade ago. She said the county’s sewer capital-improvement program ranges from about $7 million a year to a peak near $12 million, totaling roughly $47 million over six years.

John Sider, deputy director of public works, said a near-term spike in spending reflects large sewer-line extension projects — notably Whites Faulkner and Big Bethel Road — followed by a shift toward rehabilitation and pump-station upgrades as the system ages.

PFM presented a recommendation to introduce a fixed bi-monthly charge for commercial customers in addition to consumption billing, while keeping residential customers on a primarily fixed bi-monthly charge with modest, phased increases (PFM showed $2–$3 bi-monthly increments in early years). PFM said the combined approach for commercial users would help close a revenue gap while limiting shock increases for residents.

On projected revenue needs, PFM cited a revenue requirement near $12 million for FY27 that would rise closer to $14 million in FY28; in their scenario the county would use roughly $2.3 million of meals-tax support for FY28 and draw approximately $2.4 million of sewer fund balance to smooth increases. The advisers recommended a plan to "wean" the sewer fund off meals-tax support by about fiscal 2031 and to reassess rates annually or biennially.

Board members pressed advisers on key assumptions. PFM said its baseline assumed roughly 300 new residential accounts per year (a conservative figure), noted that residential usage trends have been rising overall, and that large commercial or data-center customers can be addressed with targeted rate treatment. "We wanted to make sure that the sewer fund on its own is financially sustainable," Troy said.

Some supervisors expressed concern about the impact on small businesses: many commercial accounts are small retail or service establishments that could see bi-monthly bills rise from roughly $20 under the old minimum to a proposed $60 fixed charge plus consumption, producing large percentage increases for those users. Board members asked staff to study mitigation options, such as different phasing, a tiered commercial structure or exemptions for very small businesses.

Staff also noted a separate earlier recommendation to raise the meals tax (presented previously to the board) that could generate additional capital funding, and reported a re-engineered White Oak Landing project that could save about $10 million. Tap/connection fees were noted as unchanged for many years and flagged for review.

No formal rate change was adopted at the session. Staff and advisers will return with refined numbers, a public hearing schedule and the written analyses that supervisors requested before any vote.