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The North Carolina Rural Water Association has studied the Town of Nags Head’s water rates and usage for each meter size. Current rates and expenditures were calculated to provide a baseline projection for the current fiscal year. Based on those calculations, capital improvement projects, debt service, and any inflationary or new expenditures adopted in the fiscal year 2021/2022 budget, a projection calculates revenue over expenses. Based on long term planning, including a 10-year capital improvement program, the rate ensures revenue covers expenses, as required by North Carolina’s Local Government Commission. As a result, a 5% water rate increase to the minimum water rate (including up to 3,000 gallons) and volumetric charges (tiered rates based on gallons used over 3,000) are included in the new budget effective July 1, 2021, to meet operating expenses, debt service, and capital improvements approved by Nags Head's Board of Commissioners. Water accounts are billed six times per year; the bi-monthly billing base rate will be charged according to meter size as follows:
Old Base Rate
New Base Rate
Cost per 1,000 Gallons
This rate increase is estimated to generate an additional $170,000 town-wide for fiscal year 2021/2022. This additional revenue along with $870,000 in American Rescue Plan Act Funds will be used to accomplish coordinated projects included in the first year of the Town’s five-year streets and stormwater capital improvement program. This year, asbestos water line replacements are budgeted at $1,759,930 and will take place in a portion of Old Nags Head Cove south of West Danube Street. Design work for this project is currently underway. Increased funding ensures maintenance of Nags Head's current infrastructure, provides for continued growth, and maintains the high level of service our customers expect.
An independent professional engineering firm has identified additional capital items as areas of improvement necessary to better serve our water customers. Water rates will be assessed annually to include these Board-recommended Capital Improvement Projects over the next ten years, incorporated as part of a comprehensive water master plan study.
Rate increases are never easy; however, we hope you understand how important this is to Nags Head's water system in order to sustain reliable operations.
Please feel free to contact the Amy Miller the Town's Finance Director at 252-449-2020 or email@example.com with questions or further information.