City outlines $230M wastewater rehab need; staff propose phased rate increases

Public-works staff presented a multi-decade rehabilitation need for Hampton's wastewater collection system and a proposed rate path to meet Department of Environmental Quality requirements.

"We estimated $165,000,000 in known repairs" (earlier baseline) and staff now project roughly $230,000,000 in capital repairs to address high-priority defects, Jason Mitchell said. He quantified the near-term necessity: "$106,000,000" of prioritized work is due by 2030, with another $124,000,000 anticipated thereafter.

Mitchell told council the department is pursuing a cash-funded approach (pay-as-you-go) and recommended a FY26 surcharge increase of $2.67 plus a $0.07 increase in the operating portion to avoid falling short of required capital work and to maintain reserves. The combined monthly billing for the average customer was presented as rising materially under the phase plan; staff compared Hampton's projected future bill to a regional average of about $31.81 per month.

Council discussed smoothing alternatives, but staff said spreading increases too thinly would reduce lead time and jeopardize timely delivery of capital projects. No final rate was adopted at the session; council provided preference polling guidance for staff to refine the rate plan in the manager's recommended budget.