[{"_1":2,"_99":-5,"_100":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75,87],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6047052,"mediaKeyId","3539039-f839f65d586f656b1ca082580aa5c947","parentId",3539039,"title","Wilmington officials outline customer assistance, delinquency levels and modest bill impacts under proposed FY2026 rates","audioSeconds",2594,"startMs",8496000,"endMs",11090000,"viewUrl","/Search/View?dp=1&key=3539039-f839f65d586f656b1ca082580aa5c947&start=8496&end=11090","thumbnailUrl","https://assets.pipeline.soar.com/3539039-f839f65d586f656b1ca082580aa5c947/thumbnail_8496000.jpg","articleUrl","/articles/6047052/Wilmington-City/New-Castle-County/Delaware/Wilmington-officials-outline-customer-assistance-delinquency-levels-and-modest-bill-impacts-under-proposed-FY2026-rates","mediaUrl","https://secure.pipeline.soar.com/6047052-83f575287aee329bea4198e3d6611f82/orig.mp4?Expires=1771170851&Signature=V3zpA688z3ZFneZ1~CCyGMPDGJipcWsbm2HRU4e8qynfZ-jmTUudB8P~osMM3oZ-eULAYjYqJ8NqmLc3G1cy9gzxCmPWW2skOtD3wCiCOxCMcTWr2a-mfDBD0vGPByMKd9XD7PAFhOdLNcbrj-g9hzKIYDqlyqHbj6OOyJ9QeJO68yie7Mw86VILdMCVj~Heq5iZfSVJgisYVYG9zYaaPTuUdV57-TTRfGpGiWcUl62xtxogQlRe7d2vE8mCJe45R8xzpImOj9bnBMzLt8Dr9LiLKzm4mNkL4xTa91rTwqR~hQzQBAwN0VeV0EeDDck3QWVtj6~hzUC4UwOkkZkkDA__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Wilmington, DE","date","2025-05-01T00:00:00Z","article","City and finance officials briefed the finance committee on the projected household bill impact of the proposed FY2026 rates, the utility’s delinquent account balance and assistance programs for customers in hardship.

Bill impact: Under the administration’s proposal, an inside‑city residential household using 4,000 gallons per month would see its combined water/sewer/stormwater bill rise from about $72 to $76.80 — an increase of roughly $4.67 per month under the proposed 6.5% water/sewer and 6% stormwater adjustments.

Delinquencies and collections: Director of Finance Brett Taylor reported that unpaid or delinquent accounts on the water/sewer ledger totaled roughly $19 million as of the February reporting period. The finance office said it typically brings in approximately $20–22 million per year through collections activity, including negotiated settlements, disconnections, sheriff’s‑sale processes and other enforcement tools.

Assistance programs: The presentation noted two existing assistance mechanisms: a rate ordinance discount for elderly and disabled customers (a 30% discount) and a utility payment assistance program budgeted at $250,000 per year. Black & Veatch quantified the monetary assistance built into the six‑year plan: about $475,000 annually for the elderly/disabled discount (projected to total roughly $3.6 million over the study period) and $250,000 per year for the payment assistance program (about $1.5 million over six years). Council members were told that unused assistance funds roll forward year to year.

Council concerns and follow‑ups: Several council members pressed on equity and cross‑subsidy issues. Council Member Darius Williams (questioning the split in testimony) and others asked why New Castle County wholesale sewer payments have not risen commensurately with direct retail increases; staff replied that county payments and capital obligations are governed by a contract that allocates flow and capital responsibility and that the city will review the three years of post‑contract flow and strength data with the county.

Enforcement and policy: Finance staff explained the city’s accounting practice and collection policy: the municipal accounting policy applies a 10% write‑down to delinquent accounts for each year they remain delinquent; at present many delinquencies are older balances reduced over time by such write‑downs. Finance also described the mechanics for reserve use and said draws from the rate‑stabilization reserve are disclosed in the budget ordinance and require council action.

Ending: Officials said balancing affordability and fiscal needs is an ongoing council and administration task; they encouraged customers with hardship to contact the utility and noted staff will supply additional data on DBE subcontractors, allocation of costs to wholesale customers and detailed collection metrics upon council request.

","mediaType","Video","parentTitle","Wilmington FY2026 Budget Hearings | Public Works (WSF) & WSF 6-Year Plan | 4/30/2025","oneSentenceSummary","Officials said the city’s proposed FY2026 rates would raise an inside‑city household bill by about $4.67 per month for a 4,000‑gallon customer; delinquent water/sewer accounts total about $19 million as of February and existing assistance programs and a $250,000 annual utility assistance fund are part of the six‑year plan.","taxTitle","Wilmington City, New Castle County, Delaware","taxId",12638,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6047057,"City updates indirect cost allocation; $7.9M allocated to Water Sewer Fund from general‑fund support services",936,4765000,5701000,"/Search/View?dp=1&key=3539039-f839f65d586f656b1ca082580aa5c947&start=4765&end=5701","https://assets.pipeline.soar.com/3539039-f839f65d586f656b1ca082580aa5c947/thumbnail_4765000.jpg","/articles/6047057/Wilmington-City/New-Castle-County/Delaware/City-updates-indirect-cost-allocation-79M-allocated-to-Water-Sewer-Fund-from-generalfund-support-services","https://secure.pipeline.soar.com/6047057-b1f122660869e2b0b4a26faf0257d4ef/orig.mp4?Expires=1771170851&Signature=L3zMiDMnwfpbPGGEWIAIVkB3TBPUBaMDBX~A9m5UfcrDb7sttH~ONENVMF3sU-yTzkDmQ5wn0eJxQEEBz06dttuVRQCv3J-5dxWtj4FgJL5R7VfGxqRmgrXDzd1Gkau0k3GvrefZ3A~f~CKWM7jf6uErBwWAEsSlS3xYUTeL3RZqrl4kHr1xRddXN8J3BWBjiqHTsC3I97pnNNZ1aauIybDD06aS5otFqKEZSNFI7mWdWHGsV71OaMceJLGSkAuPDKZiMr1GxPi7n2xhNDboKBMiX2fyG~LF5xcgo43qur1tHCh1wgBlNAUu4mk51ff6iaGk7Q4vlCsU64uqw2AuHQ__&Key-Pair-Id=KUT5TJCACFTXG","City staff and consultants described an updated indirect cost allocation study at the finance committee hearing, explaining that the city revalidated how general‑fund support services are charged to enterprise funds. The Office of Management and Budget used FY2025 budgets as a baseline and applied department‑level cost drivers to allocate support costs.

Why it matters: Indirect costs are part of the Water Sewer Fund’s O&M budget and feed into rate calculations. The updated analysis allocated roughly $33.6 million in general‑fund support costs across 42 direct divisions; about $7.9 million was allocated to Water Sewer Fund direct divisions, an increase compared with prior studies and a factor in proposed rate changes.

How it was done: Consultants said each of 27 indirect cost centers (finance, IT, procurement, council/administration, etc.) identified up to three cost drivers — e.g., staff time, number and value of contracts, transaction volumes or FTE counts — to allocate costs to city departments. Examples given: OMB allocations used staff time, transaction counts and FTEs; procurement allocations used contract counts and contract value tiers; IT allocations used personnel time, FTE counts and contracted‑services usage.

\"The purpose of that was to really support to determine what support services are provided by the general fund and then determining the cost of those support services, and then allocating the cost of those support services to the water sewer fund direct departments,\" said Prabhu Kumar of Black & Veatch, summarizing the methodology.

Implications: The city will apply the updated allocation model to FY2026 budget numbers to set indirect‑cost charges in the enterprise fund O&M budget. Council members raised equity questions — for example, how costs are shared with wholesale customers and how contract operations at the wastewater treatment plant affect indirect allocations. Commissioner Williams and the finance director said the methodology follows common public‑sector practice and reflects services actually provided by the general fund.

Follow‑up requested: Council Member Bass‑Knight asked for a list of DBE subcontractors and amounts; the administration agreed to prepare that list. Several council members also asked for further detail on how allocations affect New Castle County wholesale billing and how contract operations were treated in the model.

Ending: The indirect cost allocation is an input to the water/sewer rate model; the administration said OMB will use the allocation model going forward to calculate FY2026 indirect charges and to inform rate calculations included in the upcoming budget ordinances.

","An updated indirect cost allocation completed in 2024 allocates about $33.6 million of general‑fund support costs across city departments, with $7.9 million assigned to the Water Sewer Fund; the study will be used to set FY2026 indirect charges included in the utility rates.",{"_33":88,"_35":36,"_37":38,"_39":89,"_41":90,"_43":91,"_45":92,"_47":93,"_49":94,"_51":95,"_53":96,"_55":56,"_57":58,"_59":97,"_61":62,"_63":64,"_65":98,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6047062,"Wilmington proposes 6.5% water/sewer, 6% stormwater increases as part of $413M six‑year plan",8305,800,8306000,"/Search/View?dp=1&key=3539039-f839f65d586f656b1ca082580aa5c947&start=0&end=8306","https://assets.pipeline.soar.com/3539039-f839f65d586f656b1ca082580aa5c947/thumbnail_800.jpg","/articles/6047062/Wilmington-City/New-Castle-County/Delaware/Wilmington-proposes-65-watersewer-6-stormwater-increases-as-part-of-413M-sixyear-plan","https://secure.pipeline.soar.com/6047062-6a9105f318d79d8346942797f19c31cb/orig.mp4?Expires=1771170851&Signature=fEdXLVga4GOpS5vTiyGuTsRfLt7Zxz8etGfxHhsdRKa-~ff-ABm3xEDe8IFYl0I0TSu15gll-NcTqfCJ~hQuvGkkVMSZBGWmwJMQHhTSGnaB~SwaRoOV-4sZAoL4ZI3vZU2Gf~Cq25Xi6QkNyWZqJ~QprfKPicMgAxKOJHPzmqMfJihHS6kPsB87G-4Vo~S~rR-zLVz6U00TjW2oDrXovMUjUsqo~RbeZGCRWt5xTpA2JIViQuHGJi6JJi-FhorqpmDEURBVyYQ~ZT-1u3ylzjvHHtuHkjzLDPFrxsKOf0xsAExA1s80kfyHgjCixAo72VtN8-jyKUwWynzTieGqVQ__&Key-Pair-Id=KUT5TJCACFTXG","Wilmington City officials proposed a multiyear financial plan on April 24 calling for a 6.5% increase to water and sewer rates and a 6% increase to stormwater rates for fiscal 2026 as the utility seeks to fund operating costs, rising debt service and a $413 million capital improvement program.

The six‑year plan, presented by Public Works and consultant Black & Veatch, projects FY2026 operating costs of roughly $80.5 million and total debt service rising from $22.9 million in 2026 to about $37.5 million by 2031. To manage the near‑term gap, the plan relies on state revolving fund (SRF) loans and principal forgiveness, bond financings, limited cash financing in later years and a partial draw from the city’s rate‑stabilization reserve.

Why it matters: The utility must balance regulatory mandates, aging infrastructure and emergent costs — including PFAS compliance and lead service‑line work — while limiting immediate rate shock. Commissioner of Public Works Kelly Williams said the plan is intended to “build long‑term financial resilience” while meeting required reserve and debt‑coverage metrics.

Black & Veatch summarized revenue and expense drivers: retail water, sewer and stormwater revenue under existing FY2025 rates would generate about $71.5 million annually from retail customers, while wholesale wastewater treatment revenues from New Castle County account for an additional material share and are projected to rise. The fiscal 2026 budgeted O&M and projected capital program together create revenue requirements that exceed FY2026 revenues under current rates.

To close the gap, the administration proposed the following package: 6.5% water/sewer and 6% stormwater rate increases in FY2026, no cash financing of capital in FY2026–27 (to reduce short‑term pressure), and continued reliance on SRF loans, including principal forgiveness where available. The plan also draws $3.1 million from the rate‑stabilization reserve in FY2025 and an additional $2.7 million in FY2026 to maintain the ordinance‑required operating reserve level (17% of the following year’s O&M) while revenues ramp up in later years.

“Even with the proposed increases, the fund will still need time to restore debt coverage and reserves,” said Prabhu Kumar of Black & Veatch. The plan anticipates modest additional increases through 2031 that would result in a cumulative additional revenue of about $32.3 million over the five‑year period beyond FY2026 levels. Rupa Jha, also with Black & Veatch, said the model assumes continued SRF availability and competitive grant opportunities; the plan’s affordability depends on securing that low‑cost financing.

Capital priorities: The six‑year capital program totals about $413 million, split roughly $249 million for water and $164 million for wastewater, according to the presentation. Water CIP priorities include treatment‑plant upgrades and projects tied to the revised Lead and Copper Rule and PFAS (emerging contaminants). Wastewater funding is concentrated on the regional wastewater treatment plant upgrades and collection‑system work; that plant is more than 65 years old and treats wastewater for portions of New Castle County in addition to Wilmington customers.

PFAS and lead: Black & Veatch and city staff said investments related to PFAS compliance and lead service‑line identification/replacement drive a sizable portion of early‑year capital spending. The city has secured SRF loans and principal forgiveness and a federal grant to support PFAS work, but presenters stressed the need to finalize funding awards and to continue coordination with state and federal agencies.

Customer impact: For a typical inside‑city residential account using 4,000 gallons per month, the combined water/sewer/stormwater bill would rise from about $72 under FY2025 rates to $76.80 under the proposed FY2026 rates — a $4.67 monthly increase. Outside‑city customers who receive city water or county sewer also would see increases depending on contract pass‑throughs.

Reserves and timing: The plan draws down the rate‑stabilization reserve from $5.9 million at the beginning of FY2025 to a small balance in FY2026, with the objective of rebuilding a modest stabilization balance by 2031 (projected ~$7.0 million) while meeting a 17% O&M reserve requirement annually. The administration told council that the FY2026 budget ordinance will identify any planned use of reserves, and that draws outside the annual budget process would require further council action.

Council questions focused on affordability and alternatives. Council Member Kathy Field asked whether specific non‑rate savings could be identified; Commissioner Williams said some capital and maintenance work could be deferred at the cost of later higher repairs and that much of the increased cost is driven by the age of the system and new regulatory mandates. Council Member Michelle Bass‑Knight asked about the legal and procedural steps to draw reserves and was told that reserve draws are disclosed in the budget ordinance and are subject to council approval.

Ending: City officials said the plan is a proposed framework to stabilize financial metrics and fund necessary upgrades while moderating near‑term rate increases. Final rates and the FY2026 budget will be set through the city’s ordinance process and council votes later in the budget cycle.

","City of Wilmington officials presented a six‑year financial plan for the Water Sewer Fund that includes proposed 6.5% water/sewer and 6% stormwater rate increases for FY2026, drawing on SRF loans, limited cash financing and partial use of a rate‑stabilization reserve to cover a $413 million capital program and rising operating costs.","actionData","errors"]

Article not found

Wilmington officials outline customer assistance, delinquency levels and modest bill impacts under proposed FY2026 rates

City updates indirect cost allocation; $7.9M allocated to Water Sewer Fund from general‑fund support services

Wilmington proposes 6.5% water/sewer, 6% stormwater increases as part of $413M six‑year plan