Leesburg includes 3% utility-rate hikes as major water and wastewater projects loom

At the July 14 budget workshop, staff member (S2) told commissioners Leesburg’s water cash balances continue to grow but face large capital demands in upcoming years and that the FY27 budget includes a 3% water-rate increase. "Water cash is continuing to grow, but we do have a lot of big capital projects coming up," S2 said.

S2 listed major projects that will draw on enterprise funds, including the Turnpike widening, the Highway 27 main upgrade (48 to Highland Lakes), and a Walmart loop from Thomas to U.S. 441, and said recurring capital work will also continue. S2 said staff included a 3% wastewater-rate increase for FY27 as well; the wastewater plant expansion completed earlier (about $30 million in 2022–23) and the fund is back to a roughly $16 million level.

On solid waste, S2 said reimbursements from Hurricane Milton restored the fund to about $2.3 million and staff proposes a 3% rate increase to $20.61 per month to reflect higher tipping fees in residential and commercial divisions.

Stormwater spending includes planned FY27 projects such as a $600,000 Lake Hollywood effort; commissioners clarified Lake Hollywood’s location near South Street across from local schools.

Why it matters: enterprise fund decisions affect rates charged to residents and the timing of capital projects. Staff said the cash is sufficient for FY27 but warned that large projects will draw down reserves in later years.

Next steps: staff will continue presenting fund‑specific details in the remaining budget meetings and will return with any recommended timing or scope adjustments for capital projects.