In an effort to shore up its water and sewer fund, the Town of Herndon is considering increasing water and sewer rates.
If approved, the quarterly service charge for water would increase by nearly 18% or roughly $10.54. For water rates per every 1,000 gallon used, the charge would be more nominal — a little over 3%.
The quarterly service charge would increase by $7.40. Billing schedules are determined based on the size of the meter.
There would be an additional charge of $5.64 per 1,000 gallons for all water used during peak periods — defined as July through November — and greater than the average use in the previous two quarters.
“If this rate increase proposal is not chosen, retained earnings will need to be used to cover the variance,” staff noted.
Councilmember Pradip Dhakal said the town should consider evaluating the industry standard definition of “peak periods.”
“Does it make sense to only apply that for summer uses and remove that for, I would say, the latter three months? Dhakal said at a council meeting on Wednesday (April 6).
The proposal was discussed at an April 5 work session as part of the town’s deliberations on the budget for the next fiscal year.
If approved, all changes would take in effect on or after July 1 of this year.
The town is expected to continue discussion at a work session on April 12. Town manager Bill Ashton expects to examine the issue, including how to define peak periods.
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