PORTSMOUTH — The Portsmouth Water and Fire District’s average residential customer will see a water rate hike of 11.25 percent in the next fiscal year that began Monday, May 1, according to the District.

The average customer, who uses about 60,000 gallons of water per year, would be assessed an annual cost of $790.40, an increase of just under $80 over fiscal year 2023. The District has not increased water rates since 2020.

The District says its operating budget for fiscal year 2024 is increasing by 7.03 percent, and its combined operating and capital budget by 13.46 percent. 

The budget includes an 8-percent increase in each of its two-tier water rates and a 41-percent hike in the base charge for a 5/8-inch residential meter. The increase in the base charge reflects the current cost of service, including an update to actual meter pricing, according to the District. The Administrative Board approved an operating budget of $5,604,362, and a total budget of $6,326,562.

The new quarterly water rates are $9.04 per $1,000 of assessed valuation for the first 5,000 gallons and $12.74 per $1,000 for all water use over 5,000 gallons during the quarter.

Administrative Board Chairman Philip Driscoll said the water rate increases are necessary to maintain a balanced budget while funding the District’s operating costs, technology improvements, capital improvements and debt service. In addition, Driscoll said the Administrative Board has put an emphasis on increased leak detection to reduce lost water. 

The Board is working hard to properly maintain and improve the water system, while providing fair and reasonable rates for customers and taxpayers, he said. Driscoll also indicated  the Board will continue to ensure that the cost it pays for wholesale water is fair and reasonable by working with Newport Water and intervening in Newport rate filings before the Public Utilities Commission, as necessary.