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Utility fund ordinance adopted after protracted debate; council keeps fixed fees and clarifies submeter language
Summary
After hours of debate over tiered rates, flat-rate proposals and reserve levels, the council amended the utility ordinance to clarify submeter costs and add a bay-restoration line and approved Ordinance 0-26-12 (utility fund) by a recorded vote (4–2).
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Chesapeake Beach adopted Ordinance 0-26-12, which sets the town’s utility fund budget and establishes water and sewer rates for fiscal year 2026–27, following an extended series of amendments and failed proposals.
The meeting featured competing proposals including a flat per-gallon rate, percentage reductions from previously proposed tiers, and staff-recommended tiers unchanged in most bands. Several council members argued a fixed fee is necessary to maintain aging infrastructure regardless of household usage; others proposed returning to a simple flat structure to reduce perceived inequities.
Council approved several technical amendments (including clarifying submeter application fees, meter costs and inspection fees in Appendix A, and adding a bay-restoration revenue and expense line) and rejected motions to replace tiered rates with a single flat rate. After amendment votes, the final ordinance was adopted on a recorded vote (4–2).
Policy effect: The ordinance establishes the town’s FY27 utility revenues and rates as amended; staff will implement the new rate schedule and monitor reserve levels and EDU allocations in coordination with wastewater partners.

