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Hillsborough Water and Sewer Rates Increased in July

Monday, July 29, 2019
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As a reminder, Hillsborough water and sewer rates increased with the start of the new fiscal year on July 1.

The increases will affect bills starting with the one to be paid by Aug. 25.

“The town’s water and sewer utility belongs to the citizens of Hillsborough,” Mayor Tom Stevens said. “As stewards of water resources for our community, we want to manage our budget to ensure that both our supply of clean water and treatment of wastewater is safe, dependable, and sustainable.”

Water and sewer rates increased 5% each for Fiscal Year 2019-20, which runs July 1 of this year to June 30, 2020. The increases were approved by the Hillsborough Board of Commissioners with the adoption of the Fiscal Year 2020 budget on June 10.

Rate changes typically only occur with the adoption of a new budget. The town board usually votes on budget proposals in June before the new fiscal year starts.

See the attached fact sheet for information on the specific rates for in-town and out-of-town customers during the upcoming fiscal year and for the primary reasons for the increases.

Water and Sewer Fund

The town’s water and sewer rates are set to cover the costs of providing the utility service, which includes the operation, maintenance and improvements of the water and sewer system.

“The costs of providing water and sewer service are not subsidized by other sources. Nor does the utility generate any profits that subsidize other town or community functions,” Stevens said.

The town has a separate general fund to pay for operations such as planning, garbage collection, and public safety. Property taxes primarily support the General Fund.

Hillsborough’s annual budget process includes financial forecasting for the next three fiscal years. Current projections show a need to also raise water and sewer rates by 5% in fiscal years 2021 and 2022 in order to reach breakeven by FY2022, the point at which the cost of operating the utility system and its income are equal. Lower rate increases in those fiscal years may be possible if revenue exceeds projections.

For additional information, see:

Related documents


Document Fact sheet: Water and Sewer Rates Increases  

Document Fact sheet: Understanding How Hillsborough Funds Operations