Here’s a hard truth: Hillsborough residents might soon face higher water and sewer bills, and it’s not just about rising costs—it’s also about the lingering impact of Tropical Storm Chantal. But here’s where it gets controversial: Is a 7.5% rate increase over three years the only solution, or are there other ways to balance the books without burdening residents further? Let’s dive in.
In the wake of Chantal’s devastating floodwaters, which dumped an estimated 10.5 inches of rain on Hillsborough last summer, the town’s water infrastructure took a major hit. The river pump station was knocked out, and other critical systems were damaged, leaving the town grappling with skyrocketing maintenance costs—about 20% higher than the previous fiscal year. Now, local government consulting firm Raftelis is recommending a 7.5% rate hike for water and sewer services over the next three fiscal years to ensure the town can meet its debt obligations.
And this is the part most people miss: Raftelis isn’t just suggesting higher rates; they’re also proposing a new rate structure that ties charges to usage volume while adding a flat fee to cover customer service and billing costs. This shift could mean bigger bills for heavy water users, though town officials stress these are just recommendations—nothing is set in stone yet.
During a budget work session on February 23, Raftelis representative Vanessa Bryant highlighted the broader challenges facing water and sewer utilities. ‘The rate of inflation has been relatively high, and we’re facing some pretty high capital costs,’ she explained. ‘It’s an industry-wide trend.’ But is this enough to justify the increase, especially when Hillsborough residents are still reeling from Chantal’s aftermath?
Hillsborough Budget Director Emily Bradford cautions that the situation remains fluid. ‘Estimates for Chantal-related damages are still coming in daily,’ she said. ‘We’re exploring every option to defer, delay, or reduce expenses to make potential rate increases more manageable.’ Yet, the town is also waiting on millions in federal reimbursements for disaster mitigation projects, many of which aim to relocate critical water infrastructure out of flood-prone areas. Without these funds, the financial strain could worsen.
Here’s another twist: Just a month before Chantal struck, Hillsborough leaders had already approved a 7.5% rate increase as part of a budget plan to address a deficit. Despite this, officials admitted the budget gap persisted. During the February 23 meeting, town leaders asked Raftelis to provide more detailed options and insights into fixed costs beyond service and billing. A clearer picture of the budget and rate changes is expected in May.
Bold question for you: Are rate hikes the fairest way to cover these costs, or should the town explore alternative funding sources? Let’s spark a conversation in the comments—your perspective matters. As Hillsborough navigates this financial storm, one thing is certain: the decisions made today will shape the town’s future for years to come.
