Durham utility proposes modest water and sewer rate increases tied to Jordan Lake project

Durham's water management division presented proposed FY27 water and sewer rates and described how an expanding capital program — notably the Jordan Lake project — is driving the request.

"Our long term strategy … continues to have modest rate increases to be able to have sustainable utility and to try to smooth borrowing out," said a water management director. The department said the typical household would see a 12% increase under the proposal, from $80.08 to $89.75 per month, and that projected multi‑year increases reflect a period of heavy capital spending.

Staff outlined affordability measures and conservation programs. The hardship fund — described as an annual general‑fund transfer historically budgeted at up to $150,000 in recent years — has helped households; staff said it currently has been expended below that cap and that they will explore options to expand eligibility. "So we can reach more households," an assistant director said when asked about expanding the program.

Officials pointed to conservation gains: assistant director Sid Miller told the council Durham's per‑capita consumption has declined and is about 54 gallons per capita per day. Staff also showed comparative data from the UNC School of Government's Environmental Finance Center indicating Durham's bills are near regional averages, and they said the proposed rates cover operating costs, debt service and a growing, rate‑funded CIP.

Council members pressed staff on tier structure, which customers are most affected by higher tiers, and whether the hardship program and conservation outreach will be scaled to mitigate impacts on low‑income households. Staff said they will continue evaluation of eligibility rules and return with recommendations for possible program expansion.

Next steps: staff will present the formal rate ordinance as part of the scheduled business meeting process and continue to refine affordability proposals.