CHESAPEAKE BEACH, Md. — The Chesapeake Beach Town Council unanimously passed Emergency Ordinance No. EO-25-02 on March 20, 2025, providing immediate relief for water and sewer account holders facing high utility bills. The ordinance, effective February 20, 2025, amends the Fiscal Year 2025 Utility Fund budget to allocate $435,000 from the General Fund, offering a 20% reduction on water and sewer service charges for the third and fourth quarters (January–June 2025) and funding a professional study to assess the town’s utility rate structure.
The ordinance addresses resident concerns about unusually high water and sewer bills, which the council attributed to the existing FY 2025 rate structure. To provide relief, $335,000 will fund a 20% credit for active account holders, applied to water and sewer service charges only. Excluded are connection fees, tap fees, testing and inspection fees, billing fees, arrears, the Chesapeake Bay Restoration Fee, and other legally mandated charges. The credit will appear on bills issued for the third quarter (April 2025) and fourth quarter (July 2025).
An additional $100,000 is allocated for professional services to conduct a comprehensive utility rate study. The study will include an in-depth analysis of the Utility Fund, rate structure, operating costs, billing practices, and an Equivalent Dwelling Unit (EDU) audit. It will also evaluate the town’s water and sewer infrastructure, update the water and sewer manual, and provide recommendations for capital connection fees to ensure sustainable management of the utility system.
“The Council acted unanimously to provide immediate relief while also taking a proactive approach to evaluate our long-term rate structure,” said Mayor Patrick J. “Dutch” Wahl. “We are committed to supporting our residents and ensuring the utility system is efficient and equitable for the future.”
The ordinance was introduced and adopted during an emergency meeting on March 20, 2025, with a 6-0 vote, suspending the standard 20-day waiting period required by Section C-309 of the Town Charter due to the urgency of the issue. The budget amendment increases the Utility Fund’s total revenues and expenditures to $4,250,724, as detailed in Exhibit A of the ordinance. The original FY 2025 Utility Fund budget, adopted on May 7, 2024, remains otherwise unchanged.
The decision aligns with the town’s authority under Maryland’s Local Government Article §5-205(b), which allows budget amendments with a two-thirds vote of the legislative body. The need for relief was driven by resident feedback about bill increases, a concern also noted in other Maryland municipalities facing rising utility costs due to infrastructure maintenance, as reported by the Maryland Municipal League.
Chesapeake Beach, a Calvert County town with a population of approximately 6,400, operates its own water and sewer system, serving residents and businesses. The town’s utility billing practices have been under scrutiny, prompting the council to prioritize both immediate relief and long-term solutions. Residents can expect the 20% credit to reduce their next two quarterly bills, with the rate study’s findings anticipated to inform future billing adjustments.
For questions about utility bills or the ordinance, contact the town’s utility billing department at utilitybilling@chesapeakebeachmd.gov or (410) 257-2230. The full text of Emergency Ordinance No. EO-25-02 is available on the town’s website.
