FORT WRIGHT, Ky. – Judges-Executive Gary Moore (Boone County), Steve Pendery (Campbell County) and Kris Knochelmann (Kenton County) voted last week to approve the SD1 fiscal year 2027 operating and capital budget that includes a 5.13% reduction in the stormwater fee, marking the fifth such reduction in the last six years.
Despite inflationary pressures that have pushed the cost of gasoline, chemicals and other raw materials higher, SD1 has maintained an average annual operating expense increase of less than 1 percent since 2019. This accomplishment is a reflection of the District’s culture of continuous improvement and a steadfast commitment to efficiency at every level of its operations.
“Every dollar matters to the people we serve,” said SD1 Executive Director Adam Chaney. “They are working harder than ever to make ends meet, and SD1 strives to create savings for our customers wherever possible, without compromising on service or environmental leadership.”
Increased efficiencies and capital cost reductions have made it possible for SD1 to pass those savings back to customers in the form of reduced rates.
The residential stormwater fee will decrease from $3.90 per month to $3.70 per month. The fee has steadily decreased by 26.6 percent over the past six years from $5.04, where it stood for many years.
SD1 also announced that it will continue to freeze its capacity connection fee—the one-time charge paid when new construction is connected to the public system. This is part of a regionwide effort to address a shortage of income-aligned housing.
“On behalf of the Building Industry Association of Northern Kentucky and the hundreds of member companies and thousands of trade professionals working every day to meet the region’s housing and economic development needs, we want to thank the Board of Directors of Sanitation District No. 1 for their bold and forward-thinking decision to freeze residential connection fees,” said Brian Miller, executive vice president of the Building Industry Association of Northern Kentucky. “We commend SD1 for once again taking a disciplined and forward-looking approach at a time when many communities and public entities are struggling to adapt to the realities of housing affordability and infrastructure cost pressures.”
Apart from the stormwater fee, SD1’s wastewater rates are reviewed annually using a model that considers fixed and variable costs, long-term capital planning, peer utility benchmarks and financial alignment with SD1’s Aa1 bond rating from Moody’s and AA Standard & Poor’s rating.
SD1 adjusted its rate structure in recent years to more closely align its rates with fixed and variable costs. A recent analysis determined that the current structure is adequately aligned, and that SD1’s rates continue to compare favorably to peer utilities across the Midwest.
A $2 increase in the wastewater base rate will be significantly offset by a $1 reduction of SD1’s environmental surcharge, which helps to fund Clean H2O40, a comprehensive sewer overflow remediation strategy designed to meet the goals outlined in SD1’s renegotiated consent decree with state and federal regulators.
The net result of these changes will be a 2.8 percent increase in wastewater charges for the average SD1 customer, who will pay $57 per month for wastewater service starting in July, meaning the changes will appear on residential bills beginning in August.
As in previous years, actual bills will vary, and customers may see their bill increase or decrease based on their water usage.
“This budget reflects our commitment to fiscal discipline, strategic reinvestment and environmental leadership,” Chaney said. “We’re proud to be setting a regional example for how a public utility can deliver value and accountability.”
About SD1
SD1 is responsible for the collection and treatment of Northern Kentucky’s wastewater and also serves as the regional stormwater management agency. SD1 is the second largest public sewer utility in Kentucky, serving more than 347,717 residents throughout Boone, Campbell and Kenton counties. SD1 maintains approximately 1,725 miles of sanitary-sewer system pipeline, 128 wastewater pumping stations, 16 flood pump stations, seven package treatment plants, three major wastewater treatment plants, 494 miles of storm-sewer system and 35,746 storm-sewer structures.
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