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Hagerstown officials are moving forward with a new five-year rate plan for water and wastewater users that would bring slight year-over-year increases through 2024.
Council members had no objections to a rate model presented Tuesday that would raise water rates 3 percent and wastewater rates 2 percent each fiscal year, starting July 1, over that span.
Utilities Director Nancy Hausrath said the initial rate model dates to 2005 and has helped keep yearly adjustments manageable for users. It’s also helped utility departments keep pace with capital and operating needs.
Based on 10,000 gallons used quarterly, residential customers inside city limits would see their three-month costs rise from $23.37 to $24.07 for water and $77.55 to $79.10 for sewer. Outside the city, rates would go from $59.98 to $61.81 for water and $129.57 to $132.12 for sewer.
Together, the total in-city quarterly cost increase for both services would amount to about $2.50. Outside customers’ bills would increase about $4, also assuming 10,000 gallons used per quarter.
During Tuesday’s discussion, Councilman Kristin Aleshire said costs for the city’s systems continue to be much lower than they are for more than a dozen other providers around the region.
“By far, it’s the lowest competitive rate,” Aleshire said. “Compared to other jurisdictions, you’re literally just giving the water away.”
Interim City Administrator Mike Spiker, who previously served as utilities director, has said the hikes would help pay a portion of the city’s ongoing $10.5 million modernization project at its wastewater treatment plant off Frederick Street.
Invest Hagerstown funds remain
All but $95,000 from a pool of about $800,000 has been allocated for Hagerstown commercial and residential projects, but city officials on Tuesday asked to loosen the restrictions on the remaining Invest Hagerstown funds. They said they want to ensure it is all used by the end of the fiscal year on June 30.
The Hagerstown City Council gave consensus approval to allow the remainder the money — $52,500 for homeownership down payment assistance and $42,500 for rental-unit rehabilitation projects — to be used for citywide projects, as well.
The program, started this fiscal year, provides grants for a matching private investment. All funds for City Center and citywide commercial funds have been committed to date.
“The goal should be to have no money left,” said Councilman Kristin Aleshire, a champion of the idea behind the reinvestment program.
To raise the money, the city council last May voted 4-1 to approve a two-tiered tax increase for fiscal 2019. It increased the tax rate 9 cents on apartment buildings and 6 cents on owner-occupied properties per $100 of assessed value.
Mayor Bob Bruchey suggested keeping the four separate pots of money for each category, but reevaluating how the remaining dollars will be used after Jan. 1, around the midway point in the fiscal year.
City budget officials have said they hope to plan on $1 million for the fund in the coming fiscal year, an amount Aleshire has requested — but it might have to be trimmed to $800,000 again to balance the operating budget, which had an initial projected deficit of $3.4 million.
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