Edgewater Development News

Edgewater Proposes Utility Rate Increases Amidst Aging Infrastructure and Capital Needs

The City of Edgewater is undertaking a utility rate and impact fee study update to address increasing operational costs, aging infrastructure, and capital improvement needs for its water, sewer, solid waste, and stormwater utilities. The study highlights a projected $6.8 million deficit in the Water and Sewer Fund and $1.9 million in the Stormwater Fund for fiscal year 2026 due to slowed customer growth and rising expenses like chemicals and electricity. Key financial challenges include financing an $86.4 million wastewater plant expansion, with reduced loan forgiveness from the SRF program, and addressing $99.6 million in prioritized capital needs for stormwater flood risk reduction. The proposed multi-year rate plan includes annual adjustments of approximately 4.5% for water and sewer, 5.03% for stormwater, and 3% for solid waste to ensure financial sustainability, fund necessary infrastructure replacements like galvanized pipes, and maintain access to debt financing. The city is also considering eliminating recycling services to mitigate rate increases, which could save approximately $1 million annually.