Water commissioner outlines FY2027 budget and infrastructure plan; council presses for better outage communication, billing fixes and TAP expansion

Ben Juul, commissioner of the Philadelphia Water Department, presented the department’s FY2027 operating budget and defended planned spending to maintain drinking water, wastewater and storm water services, upgrade aging infrastructure and comply with regulatory requirements.

The department said the water fund is an enterprise supported by user charges; Juul stated the FY2027 operating budget at $619.9 million, a $12.4 million (2%) increase over FY2026 estimated obligations. Commissioners and deputies highlighted ongoing efforts to expand the Tiered Assistance Program (TAP) — roughly 65,000 customers are enrolled now — and described extensive applications for state and federal funding (testimony cited roughly $1.158 billion applied for since 2021 with $1.147 billion approved in low‑interest loans and $120 million awarded in grants to date).

Why it matters: Council focused on the customer experience: residents reported surprise large bills, extended outages and uneven notice for planned work. Members also pressed for clearer pathways to financial relief and for details on capital programs that will take years to deliver redundancy and replacement of miles of water pipe.

Key exchanges and details

• Outages, credits and customer communication: Multiple council members recounted recent neighborhood outages and asked why the city cannot issue credits when residents lose water for prolonged periods. Deputy and commissioner testimony said current billing is governed by rates and the water and sewer rate board, and the department’s billing system does not automatically issue outage credits. The department said standard operating procedure calls for on‑site staff to do door‑to‑door notices and leave written notices when contact is not possible and that it is updating leave‑behind materials and outreach practices.

• Surprise bills and real estate transfers: Council members raised cases in which new property owners received unexpectedly large bills tied to prior meter readings or gaps in metering. Deputy Revenue Commissioner Susan Crosby described the review process (account analysis unit, informal hearing officer, Tax Review Board) and said account analysis reviews typically take three to six weeks; informal hearings may be scheduled one to two months out. She advised constituents to work with council offices and the department’s account review processes.

• TAP expansion and rate setting: Commissioners said the TAP reconciliation process spreads the cost of TAP discounts across the rate base so reduced revenue from TAP participants is recovered through rates in a public process involving the water and sewer rate board and community stakeholders. Juul said the department has increased TAP enrollment to about 65,000 accounts and projected roughly 70,000 by FY2027 in its budget planning.

• Stabilization fund and capital projects: Deputy Commissioner Lawrence Yangle reported the department’s stabilization fund balance at about $145 million as of June 2025, down from a $217 million pre‑COVID peak after draws during the pandemic. Juul described long lead times for major projects: for example, a Skookul River crossing project is in design and could take five to six years of design plus years of construction, and the department targets replacing roughly 32 miles of pipe per year (FY25 saw ~42 miles replaced). Juul highlighted the Skookul River crossing and other resilience work to add redundancy in supply.

• Innovation and customer programs: Juul and staff described nature‑based projects such as mussel restoration research to improve water quality and separate programs (e.g., American Water Resources) that offer customers optional lateral‑repair coverage. Susan Crosby said bill stuffing and electronic bill insert channels can be used to promote such programs to customers.

What’s next: Council asked the department to provide detailed follow‑up materials — including monthly turnaround times for constituent inquiries, a breakdown showing how fee increases map to pipe replacement and stormwater work in high‑disruption neighborhoods, and more detail on the TAP fiscal note and assumptions — and to continue meeting with council members and community partners to improve outreach during both planned and emergency work.