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City adopts three-tier water and sewer rate structure for FY27 to improve affordability and conservation
Summary
After two work sessions, the Portsmouth City Council adopted a three-tier water and sewer rate structure intended to align charges with costs, preserve lower prices for essential indoor use, and strengthen conservation incentives for FY27.
The Portsmouth City Council voted on May 4 to adopt a three-tier monthly water and sewer rate structure for fiscal year 2027. City staff said the formula—tiers of 0–5 units, 6–10 units, and more than 10 units—better aligns customer bills with service costs while keeping basic indoor usage more affordable.
Al Pratt, the city’s water resource manager, provided a sample calculation showing a typical low-usage customer would see about a 7 percent difference relative to a single-tier alternative and explained the change reduces the need for larger, sudden increases in the future. Councilors framed the move as prudent long-term stewardship of enterprise funds, noting several communities that underfunded water and sewer operations face abrupt rate spikes when deferred maintenance accumulates.
The council approved the rate-structure adoption by voice vote. Staff said adopting the structure now allows FY27 fees and charges to be set and implemented at the start of the fiscal year.
What’s next: Staff will implement the new rate tiers with FY27 billing and incorporate the structure into the FY27 fees and charges schedule.
