Hillsborough faces higher water and sewer costs as it weighs rate hikes, driven in part by Tropical Storm Chantal’s damage
But here’s the price tag the town is considering to keep debt payments on track: a 7.5% increase in water and sewer rates spread over the next three fiscal years. This recommendation comes from a local government consulting firm, and officials say the move would help preserve the town’s ability to meet its loan obligations.
Posted March 3, 2026, 7:43 PM; updated March 3, 2026, 10:06 PM
By Flynn Snyder, WRAL reporter
Hillsborough leaders are evaluating potential adjustments to water and sewer bills as operating costs rise, a shift linked in part to flooding from Tropical Storm Chantal that damaged infrastructure and temporarily shut down the town’s river pump station, according to a presentation to the Board of Commissioners last month.
Chantal dumped roughly 10.5 inches of rain on Hillsborough last summer, causing outages at key water facilities and triggering repair needs across the system.
Raftelis, a local government consulting firm, proposes a 7.5% rate increase over three fiscal years to ensure the town can cover its debt commitments. The consultant noted that maintenance expenses are about 20% higher than the previous year, reflecting broader inflation in the water and sewer sector.
“Inflation has been notably high for water and sewer utilities, and we’re facing substantial capital costs,” Raftelis representative Vanessa Bryant told attendees at a budget work session on Feb. 23.
The firm also suggested revising the rate structure to incorporate charges based on usage volume, plus a flat fee to cover customer service and billing costs, according to town officials.
Hillsborough officials caution that these rate changes are only recommendations at this stage and that it’s still early in the budgeting process. They noted that some Chantal-related damage costs are still being confirmed.
Budget Director Emily Bradford said the town is still “going through that process,” emphasizing that daily estimates arrive and the situation remains fluid. The goal is to identify opportunities to defer, delay, or reduce certain expenditures to keep potential rate increases manageable.
The timing aligns with a broader regional context: Hillsborough and other North Carolina municipalities are awaiting federal reimbursements—potentially millions—to fund disaster-mitigation projects, including efforts to relocate crucial water infrastructure away from flood-prone areas.
About a month before Chantal’s impact, Hillsborough approved a 7.5% water and sewer rate increase as part of a budget plan aimed at covering rising costs. At that time, officials warned that a budget deficit persisted despite the increase.
During the Feb. 23 session, town representatives asked Raftelis to return with additional options and deeper detail on the system’s fixed costs beyond the standard service and billing charges.
Town leaders expect to have sharper clarity on the budget and proposed rate changes by May.
More on this
Hillsborough officials discussed how to finance storm damage from Tropical Depression Chantal during a recent town meeting.
© 2026 Copyright Capitol Broadcasting Company
