No Additional Increase to QAC Water & Sewer Rate Cap

Despite recommendations from a report prepared by a professional rate consultant to raise the annual escalator (percentage of increase) for public water and sewer rates, the Queen Anne’s County Commissioners voted not to increase the escalator this fiscal year. Concerned that the increase in property and income tax rates, necessary to balance the county’s budget, will create a burden on the taxpayer they voted to postpone higher water and sewer increases.

Following a Public Hearing held in May, the Commissioners, sitting as the Sanitary Commission, adopted resolutions giving the County flexibility to increase the annual rate escalator up from 2.5% to 5.5% for water rates and from 2.5% to 6.5% for sewer rates.

The Public Works Advisory Board had recommended the water and sewer rate increases after careful review of the 124-page study conducted by Springsted Inc., a professional utility rate consultant. Springsted, Inc. was asked to evaluate current water and sewer rates and determine an appropriate rate structure to adequately fund operations through 2020. The January 2010 Final Evaluation Report by Springsted, Inc., is available on line at www.qac.org.