Baltimore City Department of Public Works Proposes Multi-Year Rate Adjustments to Support Essential Infrastructure Improvements and Inflation Costs
To continue providing safe, clean, and reliable drinking water to the Baltimore region, the Baltimore City Department of Public Works (DPW) has proposed a multi-year rate adjustment to utility rates to maintain the financial sustainability of the City’s aging water and wastewater system. The adjustment will support the necessary capital investments to meet federal and state regulatory standards and rising inflation-related costs.
If approved, a typical monthly water bill for most Baltimore City households would rise by approximately 9.66%. For example, a water bill that is currently $130.15 will increase by $12.58, resulting in a new total of $142.73 per month. DPW plans to present its proposal to the Board of Estimates (BOE), the City’s spending authority, recommending a 3.0% increase in water and a 15% increase in sewer rates. This rate adjustment would affect all water and sewer customers in Baltimore City.
On December 18, 2024, DPW will present the proposed rates to BOE and request that the spending board vote on the proposal on January 22, 2025. DPW has proposed rate adjustments for Fiscal Years 2026 and 2027 as part of its standard approach to helping residents plan, with a total bill impact of 9.6% for FY25, 8.4% for FY26, and 8.4% for FY27. If adopted, the new rates would appear in bills on February 1.
Breakdown of the Proposed Rates:
Proposed Customer Impacts:
Water Bill Assistance for Residents
DPW remains dedicated to supporting Baltimore residents who may face difficulties in managing their water bills. Programs such as Water4Allwhich provides income-based financial assistance, and PromisePaya flexible payment option for customers behind on their bills, continue to offer relief to those in need. DPW appreciates the community’s understanding and support as we work together to ensure safe, reliable, and affordable water for future generations.
DPW plans to host five community meetings across the city to assist residents further. The community meeting engagement dates are as follows:
- NW Commanders Meeting (Hybrid): January 9, 2025, at 7:00 p.m., NW Police District
- Northeast Community Organizations (Virtual): January 11, 2025, at 10:00 a.m.
- War Memorial (In-person), January 15, 2025, at 6 p.m.
- Southeast Commanders Meeting (Hybrid): January 22, 2025, at 7:00 p.m., Eastern Fire/Police Department
- Southwest Commanders Meeting (Hybrid): January 28, 2025, at 7:00 p.m., Southwest Police District
These meetings aim to ensure that residents fully understand the proposed rate increases and have access to all available assistance programs. By engaging directly with the community, DPW reaffirms its commitment to transparency and providing essential resources to help residents navigate these changes.
How much will my bill increase?
For most Baltimore City households, monthly water/sewer costs will increase by approximately 9.66%. For example, if you currently pay $130.15, your bill will rise by $12.58, bringing your total to about $142.73 per month.
When will the new rate take effect?
The new rates are scheduled to take effect on February 1, 2025, if approved by the Baltimore City Board of Estimates. A public hearing on the proposed rates is set for January 22, 2025.
Why are the rates increasing, again?
Baltimore’s water and wastewater systems are aging and require significant investment to maintain. Rising costs for construction, equipment, and labor, along with strict regulatory requirements, make it essential to continue investing in our infrastructure. These increases help ensure the long-term safety and reliability of our water services.
Why raise rates now?
DPW has proposed a multi-year adjustment to utility rates aimed at maintaining the financial sustainability of the City’s aging water and wastewater system. The adjustment will support the necessary capital investments to meet federal and state regulatory standards and meet rising costs driven by inflation. In 2022, DPW raised rates by 3.0% for Water, 3.5% for Sewer, and 3.0% for Stormwater services, covering FY 2022-2025. This rate adjustment represents a 67% reduction from previous water rate increases.
Will there be another increase at the end of Fiscal Year 2025?
DPW has proposed rate adjustments for Fiscal Years 2024, 2025, and 2026—part of its standard approach to help residents plan for the next three years.
With inflation affecting everyone, is this the right time to raise rates?
Although inflation impacts us all, maintaining a safe and reliable water system is critical. Federal and state regulations require DPW to invest in our infrastructure to meet safety standards, and rising costs make these investments more expensive.
Will these rate increases ever stop?
It is DPW’s goal to put forth reasonable, inflationary adjustments that provide a minimal impact on customer bills. The adjustments approved in 2022 were the lowest in decades and were aligned with inflation at the time. However, inflation has increased faster than expected, requiring further rate adjustments to keep up with the rising costs of maintaining our water and sewer services.
What if I can’t afford my bill?
We offer assistance programs. Water4All provides income-based discounts, and PromisePay offers flexible payment plans for those who are behind on their bills.
Are Baltimore County customers also affected by this increase?
No, Baltimore County sets its own water rates. In July 2023, Baltimore County increased its rates by 4.9% which was approved by the Board on May 17, 2023. Baltimore County performs their own analysis and rate-setting process separate from the City of Baltimore.
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