Moundsville Sewer Rate Increase Likely in 2026
Emma Delk Trending
Financial and legal representatives involved in the Moundsville Sanitary Board's upcoming sewer improvement project recently provided information to city council members regarding the sanitary rate increase for the project.
The $4.2 million project aims to eliminate combined sewer overflows in the city and is part of the city's long-term control plan to remove inflow and infiltration from the city's water collection system.
The sewer improvement project, also known as the long-term control plan, will result in a 19% rate increase for customers.
In addition to eliminating CSOs, the long-term control plan includes relining and replacing sewer lines in the city as well as cleaning digesters and replacing boilers at the water plant.
Michael Abraham, a CPA at Abraham & Company PLLC who serves as the Sanitary Board's accountant, detailed at Moundsville City Council's most recent meeting that the 19% rate increase will increase the average bill for a residential customer with 4,000 gallons per month from $32.38 to $38.41 a month, or approximately $73 more annually.
The project will be covered by a $4.21 million West Virginia Infrastructure and Jobs Development Council loan at 3% over 20 years, said Abraham. He added that based on the information supplied to him by the city and the project engineer, the pro forma rate that projects the future expenses and revenues of the project, which is the 19% rate increase, will be adequate to cover the pro forma operation and maintenance expenses for the project.
A.C. Wiethe, director of management services for the Belomar Regional Council, informed council members that the project would likely be out to bid in May or June of this year. Construction would start toward the end of summer, with a substantial completion date projected to be in April or May of 2026.
Wiethe outlined that the rate increase will go into effect when this substantial completion date is met. He stressed that the rate increase is "not something that happens now."
James Kelsh and Natalie Thomas of Bowles Rice LLP detailed the ordinance drafted to increase sanitary rates, which had its first reading during the council meeting on Tuesday. Thomas said the city must have a working capital reserve fund of 12.5% of annual operating expenses for the project in addition to existing sewer bonds requiring 2.5% of operating revenue in a renewal and replacement account.
"Mike [Abraham] has come up with a 19% across-the-board increase to be able to meet your current obligations and this new debt service of roughly $4.2 million," Thomas noted.
Council member Randy Chamberlain questioned the total revenue projected to be generated by the project in its first year. Abraham responded that the project is projected to create about a $385,000 increase in revenue but noted that this does not include working capital reserve.
"If you include working capital reserve, which technically for PSC [Public Service Commission of West Virginia] reporting guidelines that does not get classified as revenue, we're probably looking at about roughly a $60,000 increase in that [in addition to the $385,000 revenue increase]," Abraham said. "For PSC report purposes, it doesn't really get counted as revenue, so we would generate about $385,000 additional revenues."
Mayor David Wood said a resident called him the other day when she saw information regarding the project and inquired, "How will it affect the water problem in Maxwell Acres?" City Manager Rick Healy said the project had "nothing to do with" stormwater services in the city, meaning it would not have "any impact whatsoever" on the water problem in Maxwell Acres.
Council members unanimously approved the ordinance's first reading during Tuesday's meeting. If the ordinance is approved during its second reading at the Feb. 18 council meeting, a public comment hearing and a third and final reading at the March 4 council meeting are required for approval.