Herndon Town Council Discusses Water, Sewer Rate Increases

The Herndon Town Council discussed an adjustment to the town’s water and sewer rates at the work session on Tuesday, Sept. 6.

With a presentation that took more than an hour and a half, members of the council were concerned that many residents wouldn’t understand why the adjustment was being considered.

The town’s water and sewer services are budgeted as an enterprise fund, meaning the revenue collected from user fees and service charges must cover the cost of the system, including repairs and improvements.

The current rates are 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 town is proposing to increase the service charge to $8.60, keep the water rate the same, and increase the sewer charge to $5.05.

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.

Bob Boxer, director of public works, said the increase is needed because of an increase in wastewater treatment costs. The Blue Plains Wastewater Treatment Plant, located in Washington, D.C., treats Herndon’s wastewater, and is a regional source for wastewater treatment in the area.

Because of regulations in the Chesapeake Bay Act, a number of improvements and projects have been planned at Blue Plains Wastewater Treatment Plant. The total cost of the improvements is estimated at $3.2 billion over 10 years. Herndon’s share of the improvement costs is $13.5 million.

Last November the Town of Herndon increased availability and connection fees for water and sewer, which will help cover a portion of the funds needed. The rest of the funds will come from the proposed increase in water and sewage user fees.

Town staff said if the town does not save for the upcoming projects through rate increases now, it could result in a more drastic rate increase in the future when the Blue Plains Wastewater Treatment Plant goes to collect on fund for the project. Town staff recommended approval of the increases.

During Tuesday night’s presentation town staff and consultants shared additional information and presentations with the council, including the water quality regulations impacting Blue Plains Wastewater Treatment Plant, BPWWTP’s capital improvement project costs, usage levels, and water and sewer rate models, among other things.

For example, consultants told staff Herndon’s wastewater capacity at BPWWTP is 3 million gallons per day, and Fairfax County’s is 31 million gallons per day. While Herndon’s share of BPWWTP’s project costs is $13.5 million, Fairfax County’s is $139 million.

Council members were concerned that if town residents were presented with the same level of information as they were, there may be added confusion about the whole process.

Councilman Bill Tirrell said the information presented Tuesday night is so much more than is required that it’s “beyond belief.” He said residents need to know the costs, why the increase is needed and what will happen if the town doesn’t increase rates at this time.

“I, too, thank you for the level of effort in this brief, but it’s overwhelming,” Tirrell told town staff. “You can have 8,000 backup slides—backup slides—with all the graphs and charts and stuff on there, but this, when we present it to the public, has got to be simple where people can wrap their arms around it.”  

Tirrell said they can get into amortization and depreciation and they can guess as to what rates might be needed 20 years out, but he’d rather deal with what they currently know in a presentation that is simple and direct.

Councilwoman Grace Wolf agreed that the town needs to be able to easily explain to residents why rates may be increasing. She said she’s curious to know how other localities are covering their cost for the BPWWTP improvements and would like to know if others have come up with creative solutions.

Councilman Jasbinder Singh said funds from the town’s reserve funds could be used to help offset the costs of the BPWWTP improvements. He said it is important that Herndon keeps its rates as low as possible.

Councilwoman Connie Hutchinson said she would like to know if there is a way to do a graduated rate increase over a number of years rather than a large increase at once, so that the town ends up with the same amount of money at the end. She said it may be easier for people to accept a graduated rate increase.

The council will see another presentation on water and sewer rate increases at its public hearing on Tuesday, Sept. 13. Town residents will be able to comment on the issue during the hearing as well. The meeting begins at 7 p.m. in the Mary Ingram Council Chambers, 765 Lynn St. 

For more information on the proposed water and sewer rate increases, visit the town's frequently asked questions page. 

* CORRECTION: The article originally listed the new service charge rate incorrectly and it has since been corrected (the 4 should have been a $). The correct proposed rate is $8.60. Correction made Sept. 14 at 1:57 a.m.