Gloucester County utilities budget proposes 13% rate increase; board weighs meals tax earmark and reserve use

County utilities staff reviewed the FY27 utilities budget and recommended a rate package that would raise water and sewer rates about 13% to help cover capital needs and operating pressures.

Miss Leg, who reviewed the utilities figures, said the FY27 utilities budget is proposed at about $12.3 million, roughly $1.5 million above FY26, and that the capital plan for utilities currently sits at approximately $4.755 million. Using a 13% rate increase as presented, staff showed a typical 5,000‑gallon household water bill rising by about $7 per month.

The county administrator and utilities staff framed a related proposal to consider earmarking a one‑cent meals‑tax increment to support utilities and to restore/rebuild necessary reserves over multiple years. The administrator said such a change would provide a “little bit of a boost” to utilities’ ability to carry out capital projects without deferring work.

Staff emphasized alternatives and tradeoffs: postponing capital work risks higher future costs or failures, while borrowing increases interest expense; using reserves reduces near‑term rate pressure but lowers fund balance policies that support bond ratings. Staff offered to produce more focused options and return with estimated revenue, operational impacts and implementation steps.

No rate ordinance was adopted at the meeting; staff asked for board direction and additional research ahead of formal public hearings and a final rate decision.