Public Utilities Department

Water & Sewer Rates
Just the Facts

Frequently Asked Questions

Consumption Charges

Where does the Public Utilities Department get its money?

The Public Utilities Department operates as an Enterprise Fund. We operate like a non-profit business within the City organization. The department is self-supporting from water sales, sewer services, and other related fees and charges.

Does Public Utilities receive tax dollars?

No. Tax money is NOT used to support the department.

What factors might affect Public Utilities’ budget?

The Bond Coverage Ratio (BCR) required by Master Bond Resolution must be 1.0 or greater. Our earnings must at least match all of our expenses including the debt we have incurred.

Why is the Bond Coverage Ratio (BCR) important?

If Utilities does not meet the BCR, it hurts our credit rating. Future borrowing could be more expensive because we will have to pay higher interest rate on the borrowed money.

What pressures are on Public Utilities that affect its budget?

Unfunded EPA and DEQ mandates impact all the regional utility departments’ budgets. No state or federal government funds are available and the City must comply with the mandates. These mandates will lead to more sewer upgrade projects in our Capital Improvement Budget.

Doesn’t Public Utilities buy water that’s already treated? How does that affect the costs?

Public Utilities buys treated water from both Norfolk and Portsmouth. For the past 12 of 18 years Public Utilities has charged our customers less than what the contract required us to pay for the treated water from both Norfolk & Portsmouth.

For more information, call our Public Utilities Department
(757) 382-6401