Lynchburg City Council to hold hearing on water, sewer rate increase

Plans to raise Lynchburg’s water and sewer rates will be put to a public hearing at a City Council meeting Tuesday.

The city proposes to increase its water rate by 3 percent and its sewer rate by 2 percent starting in July. For an average household, that would amount to an extra $1.26 on each month’s utility bill.

The new revenue generated, roughly $500,000, will be used to replace aging utility lines, maintain compliance with the city’s combined sewer overflow consent order and offset rising operating costs.

The city routinely makes incremental annual adjustments to its utility rates to cover costs and pay for infrastructure upgrades, but officials have sought to minimize rate hikes over the last two years in deference to the economic stress facing citizens.

As a result, Lynchburg’s utility billings have fallen slightly below the statewide average for the first time in at least a decade, officials say.

Tuesday's public hearing will take place during a 7:30 p.m. meeting at City Hall, 900 Church St.

Council, which reviewed the revised rates last month and raised no objections, will likely vote on the changes immediately afterward. The new rates, which are charged per every 748 gallons used, will be $2.29 for water service and $5.65 for sewer.

In other news:

Council will also hear an update about the contentious storm water fee proposal during an afternoon work session today. The fee, which would affect nearly all Lynchburg property owners, had sparked a heated debate among council last month. Several members said they wanted to slow down the process and allow more time for thought and public input.

Staff has since revised its proposed timeline to suggest the fee take effect in July 2012, as opposed to January. The city manager’s recently unveiled budget proposal provides for the creation of a new storm water management division this year, but it will initially be paid for by a transfusion of cash from the general operating fund.

Today’s report, which will be made during a 4 p.m. work session, is expected to be a brief update outlining the revised schedule and discussing next steps. Staff plans to come back to council next month with a more comprehensive presentation on the fee and the motivations behind it.

As currently proposed, the storm water fee would be levied against all property owners according to the amount of impervious surface their land contains. The revenue created would support a more robust storm water management program and pay for improvements that will be mandated under a new set of pending federal regulations aimed at cleaning up the Chesapeake Bay.

The city estimates it will have to spend around $120 million between now and 2025 to meet those heightened standards.