2027 Wastewater Rate Adjustment

A safe, reliable wastewater treatment system is essential to protect public health and keep our coastal waters clean for future generations.

To prevent equipment failures, protect our environment, and meet federal mandates, the Department of Environmental Management (DEM) has proposed an updated schedule of wastewater service charges beginning January 1, 2027, with gradual annual adjustments through January 1, 2031. 

This update will ensure our wastewater system becomes financially self-sufficient, fair to taxpayers, and capable of protecting our island.

To keep Hawaiʻi County’s wastewater system running safely, we must adjust our rates. This decision comes down to three priorities: protecting our island's environment, ensuring taxpayer fairness, and meeting federal legal requirements.

1. Protecting Our Coastlines, Community Health & Services

24 hours a day, the County manages 120 miles of sewer mains, 17 pump stations, and 6 wastewater treatment facilities. We treat over 5 million gallons of wastewater daily to protect our oceans, groundwater, and public health.

Aging infrastructure increases the risk of failures, which can lead to sewage spills in the environments where our community swims, surfs, and fishes. To keep this system running, we must address significant financial realities:

• An Operational Deficit: Last year, operating and maintaining our wastewater systems cost $31.5 million, but user fees only brought in $16.3 million.
• Annual Inflation: Essential water treatment chemicals that cost $100 in 2018 cost over $133 today. Powering pump stations and treatment plants 24/7 has increased by 50% since 2018.
• Protecting General Tax Dollars: The County must transfer millions every year from the General Fund to cover the sewer's operating gap. 

2. Fairness for All Hawaiʻi County Taxpayers

Revenue from sewer bills covers half of the system's actual operating costs. To prevent the system from going without essential maintenance, the County transfers millions every year from the General Fund that could otherwise go toward fixing roads, maintaining parks, keeping fire trucks running, and protecting neighborhoods.

Why this matters: The General Fund is meant for island-wide services like police, fire, parks, and roads. By relying on general tax dollars to subsidize the sewer system, residents who maintain their own private cesspools or septic tanks are paying for a municipal system they do not use. The new rates shift to an equitable "cost-of-service" model, where users pay for operation.

3. Meeting Federal Mandates

The County is operating under a federal mandate from the Environmental Protection Agency (EPA) to comply with the Clean Water Act. Under this mandate, we are required to establish a financial plan that fully funds our operations. Failing to update our rates exposes the County to federal fines and risks our eligibility for federal grants and low-interest loans.

The proposed rate adjustments are strictly designed to cover operations, maintenance, and necessary repairs. The funds will stay entirely within the Wastewater Division.

The updated rates will directly fund:

• Critical Maintenance Projects: Transitioning small-to-medium scale repair projects into our active maintenance budget.
• Preventative Care: Fixing minor defects before they cause expensive emergency replacements or risk worker safety.
• Regulatory Compliance: Ensuring we meet the strict water quality standards set by the Department of Health and the EPA.

What Will the New Rates Not Fund?

• Major facility expansions or massive treatment plant overhauls. Those will continue to be managed and funded through our separate Capital Improvement Program (CIP) budget.

The cost of living is the heaviest burden on our working families, and we do not take any fee increase lightly.

• Below State Average: Even with these adjustments, Hawaiʻi County's sewer rates will remain 50% lower than the state average.
• For a Single-Family Home: The initial adjustment equals $11/month or $0.36/day.
• Gradual Phase-In: To minimize the immediate impact on households, the rate increases will be phased in gradually over five years, from 2027 through 2031.  
• Financial Independence: By the end of 2031, the wastewater operations and maintenance will be independent of the General Fund, freeing up millions of dollars to be reinvested into our community.
• Fair-Share Billing: Establishes dedicated rate classes for Hotels and Private Waste Haulers based on actual wastewater strength.
• Restricted Enterprise Funds: 100% of sewer rate revenues remain inside the Sewer Fund to operate, maintain, and repair wastewater infrastructure.

Proposed Monthly Rate Schedule (2027–2031)

 Residential Rates (Flat Monthly Fee)

June 2023 -  📝Sewer Rate Study begins

June to November 2026 - 💬 Public Hearings 

October 2026 -💬County Council 1st Reading

November 2026 - 💬County Council 2nd & Final Reading 

January 2027 - ⚠️Sewer Rate Increase Becomes Effective 

2027 - 2031 - Gradual Annual Increases Over 5 years

Next Steps and Making Your Voice Heard

📆Attend Public Meetings

 Participate as the bill moves through the legislative process:

•  August 10, 2026: Wastewater Rate Study published for public review.
•  August 26, 2026: Environmental Management Commission (EMC) Review.
• September 1 & 15, 2026: County Council Policy Committee on Environmental and Natural Resources Management (PCENRM Agendas).
•  October 2026: Council Committee Review of EMC Recommendations.
•  October – November 2026: County Council First Reading and Final Reading.
•  January 1, 2027: Effective Date of New Rate Schedule.

📝Learn More

•  Sewer Rate Bill
• Sewer Rate Presentation
• Sewer Rate Study

📩Contact Us

• Questions: cohdem@hawaiicounty.gov 
• Submit Testimony (EMC): cohdem@hawaiicounty.gov
• Submit Testimony (County Council): counciltestimony@hawaiicounty.gov

CONTACT US

 ✉️ cohdem@hawaiicounty.gov

📞 808-961-8099