Public Works

 Proposed Water and Sewer Rate Changes

The City of Fredericksburg commissioned a Management and Rate Study of the Water and Sewer Operations in the City.  The study found that the City needs to increase bi-monthly water and sewer fees to both meet ongoing operating costs and to help build reserves for future capital replacements in the system.  The Water and Sewer Funds are self-supporting funds for the City.

Introduction to the Study
The City contracted with Municipal and Financial Services Group to perform an analysis of the City’s water and sewer funds, particularly the adequacy of our rates and the overall management structure of the City.  Key findings in the study included recommendations to increase bi-monthly service fees, increase availability fees, and increase connection fees, as all are currently inadequate to meet current operating and future capital needs.  The report also recommends phasing in staff increases over the next five years and creating a separate Division within the existing Public Works Department to improve coordination of these functions.

Proposed Ordinances
There are two ordinances proposed for FY 2013 to implement parts of the study:

One ordinance is the first phase of the bi-monthly service fee increases, plus increases in the availability fee and the connection fees. 

The second ordinance lengthens the schedule for penalties and cut-offs for unpaid bills, and increases the late penalty for unpaid bills from $3 to 10% of the bill.  The 10% penalty would be capped at $100.  These changes would go into effect July 1, 2012.