County staff propose 10% sewer‑use fee increase to fund plant upgrades and rising costs

Durham County staff presented a proposed 10% increase to the sewer‑use fee, citing an aggressive capital program for the Triangle wastewater treatment plant, rising operational costs, and unfunded regulatory obligations.

Deputy County Manager Rhys Jones said the Sewer Utility Enterprise Fund supports plant operations, pipes, pump stations and related infrastructure serving Research Triangle Park and adjacent areas. Jay Gibson, director of engineering and environmental sustainability, explained the utility has ramped capital investments to replace aging infrastructure approaching 40–60 years of age and must maintain strong coverage ratios to access favorable borrowing terms.

Gibson summarized the drivers behind the 10% figure: market volatility (tariffs, energy), labor inflation, an expanded capital program and a dynamic regulatory environment that has produced multiple unfunded mandates. “Our program of planned annual user fee increases really are a more sustainable approach financially,” Gibson said, adding that planned small increases reduce the risk of a later disruptive ‘rate shock.’

Staff compared the proposal with peer utilities: City of Durham proposed 12% this year, Greensboro 11%, while some neighboring systems are in a lower range (3%–5%). Commissioners asked for public outreach and emphasized the need to explain the investments to residents and businesses.

Next steps: staff will provide additional detail as part of budget work sessions and noted capital planning and debt service considerations will continue to guide rate‑setting.