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Roxboro officials propose 21% water and sewer rate increase in FY 2026–27 draft budget
Summary
City staff presented a FY 2026–27 draft budget showing combined proposed spending of about $24.9 million and proposed a 21% increase in water and sewer rates to shore up the enterprise fund, cover debt service and rebuild reserves; staff said typical residential customers would see roughly a $10–$12 monthly increase.
Roxboro city officials on June 9 presented the draft fiscal year 2026–27 budget and said they plan to propose a 21% increase to water and sewer rates to rebuild enterprise-fund reserves and meet long-term debt obligations.
City Manager Brooks Lockheart and Finance Director Janelle Moore outlined the proposed combined budget (about $24.9 million) and said the largest drivers include public safety costs and enterprise fund debt — notably a multi-decade repayment schedule on the wastewater treatment plant. "The enterprise fund is proposing increasing rates by 21%," the manager said, and added that about two-thirds of residential customers use between 2,000 and 3,000 gallons per month; "This proposed rate increase is going to increase their bill by between 10 to 12 monthly," staff said.
Staff said the water and sewer fund must improve liquidity: recent audits showed the enterprise fund’s quick ratio had declined in prior years, and the city is targeting an improved ratio to meet State requirements and reduce reliance on year-end transfers. The draft budget includes investments to proactively replace hydrants, repair lift stations (Stories Creek pump station), and a proposed water-tank lining project that staff hope to finance through a low-interest or state revolving loan. Staff also noted planned inflow-and-infiltration (INI) repairs and grants under consideration.
Finance staff separately presented budget amendment number eight to cover higher-than-expected bank and credit-card processing fees; council approved the amendment.
Council discussed the proposed water and sewer increase during the hearing and scheduled the formal budget adoption for June 29; a prior work session set for June 16 was canceled. Staff posted rate-impact information online and encouraged residents to review materials; staff estimated the 21% rate change would increase a typical residential monthly bill by roughly $10–$12.
What happens next: The budget process continues with a public adoption meeting set for June 29; staff said they will post materials and provide answers to council and public inquiries prior to final adoption.
