Herndon's Water and Sewer Rates to Increase Oct. 1

The Herndon Town Council approved an increase in water and sewer rates for user fees at a public hearing on Tuesday night.

The current rates include a $7.50 service charge per quarter, $2.90 per 1,000 gallons of water, and $3.72 per 1,000 gallons of sewer. The new rates, which take effect Oct. 1, 2011, will increase the service charge to $8.60, keep the water rate the same, and increase the sewer charge to $5.05 per 1,000 gallons.

According to town staff, the water and sewer rate adjustments will result in an average $25.04 overall quarterly increase, or about $8.35 more per month. The exact increase depends on the water and sewer usage of each household.

The in the Anacostia area of Washington, D.C. and, because of the Chesapeake Bay Act, the plant needs to do improvements.

“The total cost to complete the improvements is estimated at $3.2 billion and the remaining scheduled length of the project is 10 years,” said Bob Boxer, director of Herndon’s Department of Public Works.

The town’s share of the project cost is about $13.5 million. In to cover about 17 percent of the funding needed. The increase to the user rates will fund the remaining 83 percent that Herndon will have to pay.

The numbers were chosen because Herndon’s current usage capacity is at 83 percent, Boxer said, and new users to the system will make up the other 17 percent of the costs.

Councilman Jasbinder Singh wanted to know when Herndon originally found out about the funding that would be needed for the project. Boxer said the Department of Public Works found out Blue Plains Wastewater Treatment Plant had proposed the project in the summer of 2009.

Boxer said in the summer of 2010 the town was provided the figures letting them know how much the cost of the project would impact the town and rates within the town. The council first heard about the project and possible upcoming rate increases last fall.

Vice Mayor Lisa Merkel said it seemed the Department of Public Works was against a graduated rate increase because of concerns that it could jeopardize the town’s reserve funding.

Boxer said the sewage rate of $5.05 would be consistent for users over the next few years and would have little impact on the town’s reserves. He said they like to have about $1 million on hand, which would cover three months of costs for the town in an emergency.

A graduated rate would mean that in 2014 the town will only have $70,000 in its reserves, Boxer said. A number he referred to as “dangerously” low. He said the reserve funds wouldn’t increase back up to the $1 million mark until 2016, at which point they would have to increase the sewage rate to $5.72.

Boxer said raising rates isn’t something they want to do, but it’s a mandated requirement and this is the approach that seems best. He said, although it doesn’t ease the pain, even with the rate increase the town will still have the second lowest water and sewer rates in the region.

Councilman Bill Tirrell said it would have been nice to be able to plan for this 20 years ago but they didn’t so now they must be dealt with. “What we’re doing now is a matter of reality,” he said. “This needs to be done—why—because we have a bill to pay.”

Councilwoman Connie Hutchinson pointed out that a larger increase in 2016 is due to Herndon building increased water and sewer in the area where Metro will be developed. Town staff said they are working with the Planning Commission to provide information to the town on what capacity will be needed and how much it will cost.

One person from the audience commented on the public hearing. Jeff Davidson said he supports the rate increase and thinks it’s necessary. He said Boxer and his staff have done a good job explaining the issue, and although percentage-wise the increase looks large, it isn’t that large when it comes down to it.

Tirrell made a motion to approve the increase. He said the change in rates needs to happen now because if the town waits the number the rates need to increase will only get higher.

Councilwoman Grace Wolf agreed. She said it’s a matter of, “ripping the band-aid off quickly or slowly.” She said she believes the fixed rate of $5.05 will serve the town and residents better than a graduate rate increase.

Councilwoman Sheila Olem was in agreement as well. She said it’s a matter of infrastructure and everyone is going to have to pay their share.

Hutchinson said, “We’re all wearing blinders if we think that this is really going to be a fixed rate for the next five years.” She said there will be other costs that have not been included, and the staff has told them they will need to look at the rate every year.

“As far as everybody paying their fare share I think that’s what bothers me with doing the flat rate rather than a graduated rate because, as the staff pointed out, part of the fees for this part of the increase in this is because of increased capacity to allow increased density around the metro station,” Hutchinson said.  

“That’s not going to happen this year or next year. It won’t happen until at least 2016, maybe later. It makes sense to me that we should be gradually increasing the costs rather than a flat rate,” she said. She said in the future once development around Metro begins those new users will be online to help pay the increased rates, but until then current users will be paying for that rate increase.

Merkel said she understands Hutchinson’s point of view, but either way they’ll be revisiting the rates each year. She said the graduated increase could eventually mean rates over $6, but starting off at $5.05 provides the town more leeway with the rates. “This isn’t a fun one,” she said. “It’s painful either way.”

Singh said he’s concerned that the improvements will serve residents for the next 20, 30 or even 50 years, but Herndon’s residents will be paying for it over the next 10, which seems unfair. He said spreading the cost over a longer period of time would be fairer to users.

Mayor Steve DeBenedittis said no one wants to increase the cost to citizens if they can help it, but reality is there are billions of dollars of improvements that need to be made and the town will still remain a relative bargain in the area for water and sewer rates.

He said he wishes he could say any of these efforts will save the Chesapeake Bay, but he doesn’t know that they will and it’s something they are stuck with. He said he hopes it will help some, but believes “our grandkids will still be working to save the bay.”

The rate increase passed 6-1, with Hutchison voting against it.