Fredericksburg Approves FY 2027 Budget with New Water/Sewer Rate Structure
Fredericksburg City Council approved an FY 2027 budget with an 8% water and sewer rate increase to fund over $110 million in infrastructure projects. The new two-tier rate structure aims to ensure high-volume users contribute appropriately to capacity upgrades, addressing future growth needs.
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The Fredericksburg City Council approved a budget for FY 2027, including an 8% increase in water and sewer rates effective July 1, 2026, to support over $110 million in infrastructure improvements. The new two-tier rate system introduces Tier 1 rates for standard usage and higher rates for consumption exceeding approximately 25,000 gallons.
Monthly impacts are projected at around $8 for typical single-family homes using 12,000 gallons and approximately $12.67 for units in a 150-unit apartment complex. The changes fund critical upgrades to the Motts Run Water Treatment Plant, which will double its capacity to 24 million gallons per day by 2027 and support projected growth.
The city also plans to enhance its wastewater treatment capacity from 4.5 million gallons per day to 6 million gallons as part of a $180 million public works project. This infrastructure expansion is crucial for accommodating anticipated demand, particularly from data centers in the Technology Overlay District.
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