Despite widespread opposition, in a 4-1 vote (with one abstention) the Baltimore City Board of Estimates approved the largest water and sewer rate increase in five years.
On Feb. 1, of 2025, water rates will go up by 3% and sewer up by 15% — which the city predicts is around $12 for most bills (although could be as high as $20 for high usage households). After that, water will increase by 9% in Fiscal Year 2026 and 2027; sewer will increase by 9% in 2026 and again in 2027. Stormwater will see a 3% increase in FY 2026 and 2027.
Not a single one of the 54 statements from individuals who gave written and in-person testimony were in favor of the increases.
“You’re going to be asking people to choose between food and water,” said Daniel Dykes, a Baltimore resident. Many who provided testimony noted that the increases are coming at the same time as rate supply increases on Baltimore Gas and Electric services.
Baltimore infrastructure czar Matthew Garbark explained that the hikes are needed to meet costs of inflation, emergency projects and upgrades for two consent decrees.
“These efforts, while necessary, have been costly. Indeed, overall utility expenses have increased by nearly 38% over the past couple years,” said Garbark of the consent decrees during a presentation to the spending board.
DPW Director Khalil Zaied, who is a voting member of the spending board, stressed that the department has been working to collect on missing and overdue payments. In the last year, DPW has collected $56 million from commercial accounts. Still, he shared that the department is behind the industry standard when it comes to collecting: industry-wide the rate is at 98% but Baltimore’s DPW collects at close to 94%, the board learned.
That was the primary concern for City Council President Zeke Cohen as he abstained.
“I think it would be irresponsible to vote against the water rate increase, and at the same time, my concern is the additional 4% of uncollected bills that could be contributing to reducing the total cost for ratepayers,” said Cohen in an interview after the meeting.
City leaders encouraged residents to look into the Water for All program, which can help with bill payment.