Tuesday, the Lynchburg City Council will look at a budget proposal that calls for raising customers’ water, sewer and stormwater management bills.
The council will hold a work session at 4 p.m. that includes reviewing the fiscal 2025-26 budget proposal from the water resources department. It will take place in the second-floor training room at city hall, 900 Church St.
The work session will be followed by a regular council meeting at 7 p.m. in council chambers.
The new fiscal year begins July 1.
According to the water department’s budget presentation, there will be a proposal to raise the monthly water service rate from $3.29 to $3.45 per hundred cubic feet, or 748 gallons; to raise the monthly sewer service rate from $8.30 to $8.65 per hundred cubic feet; and to raise the monthly stormwater service rate from $4.93 to $5.15 per single-family unit.
The average residential monthly bill is projected to increase by $2.90, the proposal states.
Currently, the city’s average residential monthly water and sewer cost for customers is $85.16; that’s $24.53 for water and $60.63 for sewer. The average monthly rate for all of Virginia is $95.90, or $42.06 for water and $53.84 for sewer, according to the budget presentation.
Lynchburg’s $85.16 average is lower than the average rates in several neighboring localities, it notes, including Campbell County, $92.02; Amherst County, $138.08; Bedford County and the town of Bedford, $133 each; Appomattox, $123.57; the town of Amherst, $115.95; and Salem, $101.35.
Budget details and projects
The water operating fund budget is $18.8 million in the current fiscal year and is projected to grow to $19.6 million in fiscal year 2025-26. Projected cost increases include: salaries and benefits, $379,000; debt service, $285,000; contractual services, $140,000; supplies and materials, $70,000; and utilities, $69,000. However, the projected cost of capital outlays is expected to decrease by $186,000.
The water system is undergoing four current construction projects: phase four of downtown system upgrades, $6.15 million; water line replacement at Sixth Street and Madison Street, $5.25 million; replacement of lead pipes, $3 million; and replacement of cellular meters, $1.8 million. Three new projects will be added in fiscal year 2025-26: system upgrades in the Daniel’s Hill community, $4.2 million; water line replacement at Fillmore Street, $3.5 million; Abert & James pump station, $2.5 million.
The sewer system operating fund is $29.9 million in the current fiscal year and is projected to grow to $31.2 million in fiscal year 2025-26. Projected cost increases include: contractual services for cleaning the James River sewage interceptor, $820,000; salaries and benefits, $296,000; administration and payments to the water fund, $115,000; and chemicals, $95,000. However, the cost of “indirect funds and self-insurance to the general fund” is expected to decrease by $119,000, while the cost of paying down debt will decrease by $118,000.
There are three ongoing sewer system construction projects: the Blackwater Creek combined sewer overflow tunnel, $104 million; phase one of service extension to the Richland Hills neighborhood, $6.8 million; and the water resource recovery facility sludge holding tank, $6.1 million. Five new projects will be added in the next fiscal year: Golf Park combined sewer overflow management, $3.3 million; combined sewer overflow separation in the Rivermont area, $2.2 million; Garnett Street building demolition, $1.6 million; sanitary sewer evaluation studies area evaluations/construction, $1.5 million; and Tate Springs sewer replacement $500,000.
The stormwater system budget is $4.5 million in the current fiscal year and is expected to grow by about $100,000 in fiscal year 2025-26. Projected cost increases are: debt service, $67,000; salaries and benefits, $59,000; contracted services, $49,000; and community development charges, $22,000. However, three items will see cost decreases: indirect costs/self-insurance, $60,000; public works, $41,000; and capital outlay, $40,000.
There is one ongoing stormwater system construction project: College Park upgrades, $3.1 million. Five new projects are planned in the next fiscal year: Heath Avenue upgrades, $750,000; Mosely best management practices upgrades $440,000; Hill Street upgrades, $410,000; Graves Mill Road outfall, $280,000; and Chesterfield Road upgrades, $208,000.
As of Monday afternoon, water resource department officials had not responded to a request for information on several details of the budget proposal.
You can view the work session agenda here.
