Staunton officials propose modest water, sewer and refuse rate increases to shore up aging systems

City staff on March 12 told the Staunton City Council that the city’s water, sewer and environmental (refuse) enterprise funds need revenue increases to address aging infrastructure and looming capital costs.

Miss Moyers, the city’s finance official presenting the review, said the water rate is currently $4.06 per 100 cubic feet and the sewer rate is $5.60 per 100 cubic feet. She said the water fund’s five‑year capital list includes a large Richmond Avenue waterline replacement (phase 2) estimated at about $10 million and that unfunded needs across the utilities total roughly $50 million. "Our proposal is increasing the water rate to $4.28 per 100 cubic feet," Moyers said, describing that step as a 5.42% increase; she added the proposed sewer rate would rise to $6.00 per 100 cubic feet, a 7.14% increase, and residential refuse would move to $27.50 per month, about a 14.54% increase.

Moyers said the water fund currently carries an accumulated facility fee balance of about $13 million but that the reserves do not cover five‑year needs and that the North River pipeline replacement remains unfunded. For sewer, she noted a five‑year CIP and several projects (Commerce Road, New Hope Road, National Avenue upgrades) where costs have risen and funding sources remain to be determined. The environmental/refuse fund was described as the most acute budget risk: staff noted a fund balance of roughly $500,000 and said the landfill’s capital needs and a $2 million share in FY29 will strain reserves.

Councilors asked about refuse truck replacement plans and lifespan. Public works staff said the city hopes to replace two trucks in FY27 (to catch up) and one truck per year thereafter; new trucks were estimated at $300,000–$350,000 each. Moyers said each 5% rate increase in the water fund yields about $206,000 of additional revenue and about $212,000 for sewer; a 5% change in refuse produces about $152,500.

Beyond immediate increases, staff recommended commissioning an independent utility rate study to benchmark peer localities and to align long‑term rates with a five‑year capital program. Moyers said the city has not documented a comprehensive rate study for the combined utilities and estimated a consultant cost in the mid‑tens of thousands.

The council was briefed that, if adopted, the proposal presented on March 26 would be followed by an April 9 public hearing and April 23 consideration alongside the FY27 budget ordinance. The staff presentation did not include a final vote on the rate ordinance at this meeting.

The next procedural step is the proposed budget presentation on March 26 and the public hearing on April 9, after which council will consider any ordinance to change rates.