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Smithfield council approves $50 sewer fee increase, directs study of tiered billing
Summary
After extended public comment about a dwindling sewer enterprise fund, the Smithfield Town Council voted to raise the sewer fee $50 for FY27 and tasked the town engineer with designing a consumption-based tiered billing system and reporting back by May 31, 2027.
The Smithfield Town Council voted on June 2 to increase the town's sewer fee by $50 for fiscal 2027 and directed the town engineer to develop a tiered, consumption-based billing structure with a progress report due May 31, 2027.
The decision came after more than an hour of public comment and staff presentations framing a long-running funding shortfall at the Smithfield Sewer Authority. Resident James Kevin McNeelis told the council the authority's finances are deteriorating and warned that, "by 2029 the fund will be completely depleted" without larger increases and infrastructure investment. Town engineer Josh Jill said the sewer reserve balance stood at roughly $2.3 million and described industry guidance that 90 to 120 days of operating reserves is prudent for an enterprise fund.
The council majority concluded the authority needs near-term revenue and interim policy changes while a consumption-based billing option is developed. On the motion approved June 2, the council raised the flat sewer fee by $50 for FY27 and directed the town engineer to work with the consultant to design tiers based on usage and to report progress by May 31, 2027. President called the motion and the council recorded the vote in favor.
Supporters of the increase argued the town had gone many years without substantive rate adjustments and that a multilayered approach (near-term increase plus a longer-term tiered system) would be fairer and more sustainable. Several residents urged minimizing hardship for low-usage households and asked staff to consider transition options for seniors and fixed-income residents as the town moves from a flat fee to consumption-based charges.
Council members and staff said alternative revenue options and fee updates (separate charges, updated service fees) would also be explored to reduce reliance on a single flat charge. The town engineer noted some administrative complexity because Smithfield receives water service from multiple providers, but said the existing billing software should support a tiered sewer charge once usage data are integrated.
Next steps: the engineer will seek a scope amendment with the town's consultant if needed, develop a tier design, and present a status report no later than May 31, 2027. The council's FY27 budget will reflect the $50 increase.
