Hagerstown approves funding increase for complex water and wastewater rate overhaul

Hagerstown approves funding increase for complex water and wastewater rate overhaulThe city council authorized a $24,850 allocation for consultant NewGen Strategies and Solutions to finalize iterative rate design modeling and draft a new rate study report.

The City Council approved $24,850 in additional funding to complete the FY 2026 Water and Sewer Rate Study Update.

Consultant NewGen Strategies and Solutions requested a change order after the project's scope expanded to include complex tiered rate alternatives.

In separate action, the council approved the annexation of the 36.78-acre Cline Farm, which will require developer-funded extensions of city water and wastewater lines.

The City of Hagerstown, Maryland, is advancing a comprehensive update to its water and wastewater rate structures following the approval of additional consultant funding during an April 28, 2026, City Council meeting. The council approved a consent agenda item allocating $24,850 to NewGen Strategies and Solutions to complete the FY 2026 Water and Sewer Rate Study Update. The firm, which originally developed the city's rate model in 2005, requested a change order after the level of effort required for the study exceeded the initial $50,050 budget. According to a letter from NewGen partner Michael Maker included in the meeting packet, the budget overrun was driven by the complexity of recent rate design decisions. Meetings with city stakeholders introduced a range of structural questions that required iterative model development. The consultant team was tasked with developing and comparing distinct tiered rate alternatives, analyzing residential versus non-residential account classifications, and preparing sample bill analyses across multiple usage levels. The newly approved funding includes $10,850 for the water rate model update, $9,000 for the wastewater rate model update, and a $5,000 contingency. The funds will cover a $7,350 budget overrun and $11,500 in remaining completion activities, which include further iterations to the rate design model, drafting a final rate study report, and delivering up to two presentations to the City Council. In separate utility-related business, the council approved an annexation plan and introduced an annexation resolution for the 36.78-acre Cline Farm property. According to the annexation plan, the property is located within the city's Medium Growth Area and will be served by an extension of Hagerstown's water and wastewater lines. The city noted that sufficient capacity exists to serve the property, and all extensions of sanitary sewer, water, and storm drain infrastructure will be constructed at the developer's expense with no cost to the municipality. Additionally, the council authorized a one-year renewal for an on-call plumbing services and backflow preventer inspection contract with Richie Co. Inc., effective May 1, 2026.