OCEAN CITY, Md. -- At a town council meeting on Monday, Ocean City officials approved an incremental increase for water and sewer rates. It means many neighbors in the coastal town will see higher charges starting on July 1st.
The rates will increase over the next five years at the beginning of each fiscal year. In Ocean City that begins on July 1st, so FY25 begins on July 1st of 2024.
Here is what a typical household with 11 fixtures that produces 18,000 gallons per quarter will be looking at:
Water Bill: Per Quarter
- Current FY24: $122.28
- FY25: $130.95
- FY26: $137.45
- FY27: $143.95
- FY28: $148.10
- FY29: $152.80
Sewer Bill: Per Quarter
- Current FY24: $105.60
- FY25: $111.10
- FY26: $114.40
- FY27: $117.70
- FY28: $121.00
- FY29: $124.85
Patty Lockett of Ocean City is worried for those on a fixed income.
"The seniors, their money is diminishing and when Ocean City rises the costs, be it water, sewer, electric, we hurt," said Lockett. "It means taking away from food, taking away from paying the bills, paying the mortgage, so yeah it's going to hurt a lot of people."
Water and sewer systems are fully funded by water and sewer rates. City Manager Terry McGean said it is why every five years, the town completes a rate study, keeping in mind operating costs and future capital projects.
"We're probably going to have to build an entire new water treatment plant in the next ten years, so we want to make sure that we have the money set aside for some of that," said McGean. "That will help reduce our borrowing costs and eliminate a giant rate increase when we have to build that new plant."
Avoiding a huge rate increase is why Perry Pillas, who also lives in Ocean City, is not too shaken up over incremental hikes.
"It gives people the opportunity to budget and be able to lay out what they might need to do down the road, like maybe work an hour extra early or later at work," said Pillas.
Pillas also said these price-hikes will help maintain the water and sewer systems within Ocean City.
"We're due for some incremental raises, you know, and I think people would be happy because with wastewater and other sewer treatments we need the town kept in good shape," said Pillas.
By July 1st, 2024, Ocean City's rates will be above those of West Ocean City, Ocean Pines and Berlin, but will remain below the rates of Salisbury and Newark.
The motion passed unanimously on Monday night.