JCC Water Customers Will Need to Pay for $60M in Future Projects

By Desiree Parker Saturday, November 26, 2011

James City Service Authority is looking at $60 to $70 million in sewer upgrade costs over the next 20 years, which means water customers will likely be looking at higher bills in the future.

The study process related to the consent order has led the county to examine its sewers through various means. Staff looked at failing sewers and the various causes ranging from tree roots to grease buildup to utility lines piercing the systems. The county has roughly between eight and 12 sewer overflows each year, which lead to raw sewage escaping the system.

Now that the study period is drawing to a close, JCSA General Manager Larry Foster told the Board of Supervisors Tuesday afternoon that “we are looking at substantial financial implications,” to the tune of $60 to $70 million on upgrade and repair costs over the next 20 years.

Though the calculations haven’t been made yet, Foster estimated residential customers could be looking at annual bills roughly between $700 and $800 each year.

The JCSA has a separate budget and isn't funded through county general revenues. The only ways to cover the upcoming projects will be to increase service fees or connection fees, Foster explained.

Currently the JCSA has $33 million in reserves, but most of this is earmarked for future needed projects and necessary bond reserves, Foster said.

Supervisor Jim Kennedy suggested the county work on renewing talks with AB InBev to encourage the company to use JCSA water, and not Newport News water, in the future. The county has a contract with Newport News to import water, but so far the extra water hasn’t been needed. The JCSA could make money by using the water it has paid for to sell back to InBev.

County Administrator Robert Middaugh said the county would approach the company, but Newport News recently offered InBev a lowered water rate and that a switch wouldn’t be likely.