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Calvert County recommends multi‑year water and sewer rate increases to stabilize enterprise fund
Summary
Public Works presented a rate study recommending modest, multi-year rate adjustments (illustrative 3% annual water increases and a sewer schedule with two 9% years then 3%) and a FY2026 budget recommendation; the presentation included sample bills showing a median combined customer increase of roughly $20 per quarter.
County Public Works staff and consultant NextGen Solutions presented a detailed water and sewer rate study during the meeting, urging the board to adopt multi‑year rate adjustments to sustain operations, fund capital projects and meet a 180‑day reserve target.
J.R. Cosgrove, director of public works, introduced Mike Maker of NextGen Solutions, who outlined guiding principles for the Water and Sewer Enterprise Fund: financial self‑sufficiency, reserves for contingencies and predictable rates to avoid deferred maintenance. "The Water and Sewer Enterprise Fund should be financially self supporting," Maker said.
The consultant described the proposed revenue path used for modeling: illustrative 3 percent annual increases for water revenue and a sewer scenario with two years of 9 percent increases followed by three years at 3 percent inflation. Sample bills showed a median combined residential customer currently paying about $262 per quarter would see a roughly $20 increase to about $281 per quarter under the proposed scenario.
Cosgrove identified planned capital work that drives the needs assessment: distribution‑system replacements in several older communities, station and plant improvements, biosolids upgrades, sewer collection rehabilitation and designs for potential sewer extensions in North Beach and other communities. Commissioners asked about the feasibility and costs of extending public water to remote areas reliant on private wells and failing septic systems; staff said standalone community systems or holding‑tank solutions are possible but typically expensive.
Cosgrove summarized the department’s recommendation: proceed with the proposed rate increases and include them in the FY2026 commissioner budget. "So with that, the Department of Public Works recommends proceeding with the proposed increase of rates, [which] have been included in the FY 2026, the commissioner's budget," Cosgrove said.
Commissioners discussed multi‑year authorization language so they would not need annual rate sessions if the model remains within presented assumptions. Staff said the model covers five years and can be rerun if conditions change. No final vote was recorded at the meeting; the rate proposal was entered into the FY2026 budget process for further consideration.
What's next: Public Works will provide model scenarios and suggested language for multi‑year authorization for the board’s review; commissioners indicated interest in a two‑year or multi‑year approval option if it stays within the presented assumptions.
