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 system repairs and upgrades.

What the Changes Mean Monthly

In-town customers will see increases of:

• 86 cents per 1,000 gallons for water.
• $1.22 per 1,000 gallons for sewer.

Out-of-town customers will see increases of:

• $1.68 per 1,000 gallons for water.
• $2.38 per 1,000 gallons for sewer.

The minimum usage charge for water and sewer continues to be 2,000 gallons.

More Information

The Hillsborough Board of Commissioners adopted the Fiscal Year 2026 budget on June 9 with expenses totaling $14.7 million in the Water and Sewer Fund. Prior to adoption, the board conducted a public hearing on May 19 and budget work sessions on May 19 and 27. Information was provided in the monthly community newsletter that is mailed with water and sewer bills and in town news releases and social media. 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:

• Budget and Finances page
• 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 North Carolina rates research.

Questions? Contact Hillsborough Budget Director Emily Bradford by email or by phone at 919-296-9427.