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Peekskill proposes $9.59 million water budget, small rate rise for 2026
Summary
Water and Sewer Superintendent Dave Rambo told the council the proposed 2026 water budget is $9,589,000 and includes a roughly 3% consumer rate increase; he also reported recent lead-and-copper sampling showed no violations and described grant-funded hydrant and dam work.
Dave Rambo, Water and Sewer Department presenter, told the Peekskill Common Council the city is proposing a $9,589,000 water budget for 2026 and described the department's priorities for grants and capital repairs. "We're looking to propose a $9,589,000 budget for 2026," Rambo said during his presentation, framing the package as a roughly 5% general increase from the prior year.
Rambo laid out the department's scope — three dams, four reservoirs, three pumping stations, a treatment plant, five storage tanks and about 62 miles of mains — and said the system currently treats roughly 4,200,000 gallons a day for residents and businesses. He also told the council the proposed retail charge would rise from about $8.47 to $8.72 (a 3% increase noted in the transcript) and that grant awards, including a CDBG program to replace roughly 75 hydrants, could reduce rate pressure.
Rambo reported the city completed its lead-and-copper sampling in August and that the results showed no violations: "In, August of this year, we completed our lead and copper sampling ... and we have no violations." He said the city has replaced lead piping on the municipal side where it was found and continues a program of potholing and record updates to identify private-side service lines for future replacement under EPA rules.
Council members asked about capacity for new development and the city’s ability to provide both water and sewer services. Rambo responded the system can produce up to 8,000,000 gallons, noting new development typically uses tens of thousands of gallons per day and that regulatory changes — not immediate supply — are the likeliest drivers of future plant upgrades. The council did not take a final vote on the budget during the hearing.
