The Baltimore City Department of Public Works (DPW) has proposed a multi-year rate adjustment to utility rates aimed at maintaining the financial sustainability of the City's aging water and wastewater system. The adjustment will support the necessary capital investments to meet federal and state regulatory standards and meet rising costs driven by inflation.

If approved, a typical monthly water bill for most Baltimore City households would rise by approximately 9.66%. A water bill that is currently $130.15 will increase by $12.58, resulting in a new total of $142.73 per month. If adopted, the new rates would appear on bills on February 1, 2025.

DPW plans to present its proposal to the Board of Estimates (BOE), the City’s spending authority, recommending a 3.0% increase in water rates and a 15% increase in sewer rates. This rate adjustment would affect all water and sewer customers in Baltimore City. 

On December 18, 2024, DPW will present the proposed rates to BOE and request that the spending board vote on the proposal on January 22, 2025. DPW has proposed rate adjustments for Fiscal Years  2026 and 2027 as part of its standard approach to helping residents plan ahead, with a total bill impact of 9.66% for FY25, 8.4% for FY26, and 8.4% for FY27.

DPW is implementing a $1.9 billion, six-year capital improvement program to address critical infrastructure needs. This plan focuses on replacing aging water mains, reducing sewer overflows, and modernizing operations to meet both current demands and future challenges.

“This rate increase is a critical component of our comprehensive strategy to safeguard the safety, reliability, and quality of the services we deliver,” said DPW Director Khalil Zaied. “The adjustment is necessary to address rising costs driven by inflation and evolving regulatory requirements,” Zaied explained. “Investing in our infrastructure is essential to ensuring the continued delivery of clean water and efficient sewer services for our communities."

Like many cities nationwide, Baltimore is grappling with the effects of inflation. According to the U.S. Bureau of Labor and Statistics, the Consumer Price Index for urban consumers rose by 19.4% between January 2021 and July 2024. To help mitigate the financial impact, DPW implemented a departmental spending freeze as a proactive measure to conserve resources. However, raising rates is a prudent step to safeguard what we have built and ensure the continued success of critical infrastructure projects. This includes compliance with the requirements of the consent decree for the wastewater treatment plants, capital improvement projects, and addressing rising costs for the chemicals essential to water treatments. The rising cost of construction highlights the critical need to secure funding for both current and future projects aimed at maintaining and improving Baltimore’s water systems. These efforts are essential to protecting the progress made and ensuring sustainable services for residents.

DPW remains dedicated to supporting Baltimore’s residents who may face difficulties managing their water bills. Programs such as Water4All, which provides income-based financial assistance, and PromisePay, a flexible payment option for customers behind on their bills, continue to offer relief to those in need. To further assist residents, DPW plans to host five community meetings across the City.  

The community meeting engagement dates are as follows:

• Northwest Commanders Meeting (Hybrid): January 9, 2025, at 7:00 p.m., Northwest Police District
• Northeast Community Organizations (Virtual): January 11, 2025, at 10:00 a.m.
• War Memorial (In-person), January 15, 2025, at 6 p.m.
• Southeast Community Meeting (Hybrid): January 21, 2025, at 6:00 p.m., (Location TBD)
• Southwest Commanders Meeting (Hybrid): January 28, 2025, at 7:00 p.m., Southwest Police District

These meetings aim to ensure that residents fully understand the proposed rate increases and have access to all available assistance programs. By engaging directly with the community, DPW reaffirms its commitment to transparency and providing essential resources to help residents navigate these changes.

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