Water rates in Urbanna to rise 10% on July 1

Following a public hearing on June 13, the Urbanna Town Council voted to raise water prices for in-town customers by 10% starting July 1.

Even with the rate increase, Town of Urbanna water is the cheapest of the three water providers in Middlesex, and lower than municipal water rates of comparably sized communities outside of the area, said Urbanna Mayor Bill Goldsmith.

But low water prices can be a problem when seeking grants or low interest loans, he added. Certain low interest loans and grants are not available because the town’s rates are too low and median household income is too high.

In his report to council, Town Administrator Ted Costin said grants and low interest loans sought by the town have been denied and two reasons cited — the in-town water rates are too low, and the gap between in-town and out-of-town rates is too great. “Funding entities want to see a commitment (from the grantee) to the improvement via a willingness to do what is necessary; such as rate increases, to cover loan amounts or provide matching funds.” Costin’s report states, “Incremental increases such as the proposed 10% though have been deemed more manageable for in-town users than one large increase.

This means water rate increases could be possible in future budgets.