FORT WRIGHT, Ky. – The Judges-Executive of Campbell, Boone and Kenton counties voted today to approve Sanitation District No. 1’s (SD1) fiscal year 2026 operating and capital budget, which includes a 5 percent reduction in the stormwater fee, marking the fourth such reduction in the last five years.
Despite economic headwinds over the past decade, including the COVID-19 pandemic precipitating a period of hyperinflation, SD1 has maintained an average annual operating expense increase of less than 1 percent since 2019. This rare accomplishment is a reflection of SD1’s culture of continuous improvement and a steadfast commitment to efficiency at every level of its operations.
“We know every dollar matters to the people we serve,” said SD1 Executive Director Adam Chaney. “That’s why we’ve made it our mission to return savings to our customers wherever possible, without compromising on service or environmental leadership.”
Increased efficiencies and lower capital costs have made it possible for SD1 to pass savings back to customers in the form of reduced rates. In addition to the stormwater fee reduction, SD1's environmental surcharge will be reduced next year.
SD1 also announced that it will again 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 our hundreds of member companies working to meet the region's growing housing and economic development needs," said Brian Miller, executive vice president of the Building Industry Association of Northern Kentucky, "we want to thank the Board of Directors of Sanitation District No. 1 and the Judge Executives for their bold and forward-thinking decision to freeze residential connection fees. This action sends a clear message that our region is serious about addressing the housing crisis by holding down cost increases that directly impact home affordability. By taking this fiscally responsible step, SD1 is helping to ensure that more families can afford to live, work and thrive in Northern Kentucky."
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 Aa bond ratings from Moody’s and Standard & Poor’s.
SD1 has adjusted its rate structure annually over the last five 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.
An increase in the wastewater base rate will be partially offset by a reduction of SD1's environmental surcharge. The surcharge 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 4.8 percent increase in wastewater charges for the average SD1 customer, which represents a slight decrease from the rate schedule outlined in a four-year rate plan unanimously approved by the Fiscal Courts of Boone, Kenton and Campbell counties in 2023.
These changes will take effect July 1 and 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 stewardship,” Chaney said. “We’re proud to be setting a regional example for how public utilities 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 storm water 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 1,720 miles of sanitary-sewer system pipeline, 129 wastewater pumping stations, 16 flood pump stations, six package treatment plants, three major wastewater treatment plants, 505 miles of storm-sewer system and 35,046 storm-sewer structures.
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