PRINCE FREDERICK, Md. — In the lead-up to the FY26 budget vote, the Calvert County Department of Public Works conducted a rate study to determine the financial outcomes of rate increases over the next six years. The goal is to create a self-sustaining water and sewer system in the county.
The study examined how rate increases impact the long-term financial plan that will, in turn, keep customers’ bills affordable and services consistent.
Both the Board of County Commissioners and the director of Public Works, John “JR” Cosgrove, emphasized the importance of a self-sustaining business model that includes an ample rainy day fund to account for emergencies and contingencies. They aim for a cash balance on hand equaling 180 days of operating expenses.
The DPW also highlighted the capital improvements plan—which is the investment in updates to keep the system modern and avoid huge payouts in the future—as a key part of their plan.
The capital improvements fund is supported through a one-time fee charged to new developments, called a capital connection fee, while operating fees are paid for by user rates. For both types of revenue, growth and consistency of rates and payments are essential to keeping the system going.
The Water and Sewer Enterprise Fund’s main challenge is making sure the program runs, as Cosgrove said, “like a business.”
To ensure proper planning, the DPW conducted a study comparing different rate increases to see how they affected core planning measures, from 3% (inflation rate) to 9%. They planned for a 7% increase in 2026—approximately $20 a quarter for users—in the budget.
Cosgrove observed that people’s water usage had remained mostly unchanged in the year since they introduced the tiered system, which was meant to encourage water conservation.
“I guess those who want green yards, want green yards,” he said.
Cosgrove recommended proceeding with the proposed increase of rates outlined in the FY 2026 budget.
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I love the new payment system though. It’s awesome.