Post Date:July 17, 2026 8:00 a.m.The sedimentation basins at the town's water treatment plant.
Water and sewer rates each increased by 7.5% on July 1.
The changes are part of the budget plan adopted in June for the new fiscal year. They will be seen on bills received in August. The increases are needed to help cover the costs of treating and distributing drinking water and collecting and treating wastewater.
Despite the increases for this new fiscal year, a budget deficit remains due to:
Cost escalations and inflation.
Decreased water usage and decreased revenue from reducing the minimum charge in prior years.
The need for significant repairs and upgrades to the system.
What the Changes Mean Monthly
In-town customers will see increases of:
93 cents per 1,000 gallons for water.
$1.31 per 1,000 gallons for sewer.
Out-of-town customers will see increases of:
$1.81 per 1,000 gallons for water.
$2.55 per 1,000 gallons for sewer.
Customers who use about 4,000 gallons of water monthly will see a monthly increase of about $9 in town and $17.50 out of town.
The Hillsborough Board of Commissioners adopted the Fiscal Year 2027 budget on June 8, with expenses totaling $15.8 million in the Water and Sewer Fund.
Before approving the budget, the board conducted a public hearing on May 18 and budget work sessions on May 18 and 27. Information was provided in town news releases, social media and the monthly community newsletter that is mailed with water and sewer bills. Subscribe to town news.
The Water and Sewer Fund is separate from the town’s general fund and does not receive revenue from taxes. The fund does not make a profit from water and sewer rates.
The fiscal year runs July 1 through June 30. For more information, visit the:
Water and Sewer Rates page, which includes information on the minimum use charge, the different rates for in-town and out-of-town customers, and comparisons of rates.
Questions? Contact Hillsborough Budget Director Emily Bradford by email or by phone at 919-296-9427.