Troy Proposes Higher Water and Sewer Rates for Business
Local operators face an increase of up to 10 percent as the city moves to balance its general budget.
Updated on Oct. 31, 2026 in Utilities
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The Troy City Council is considering water and sewer rate hikes of 10.1 percent and 7.6 percent, respectively. The proposed increases arrive alongside a plan to transfer $2.5 million from the water fund to the city's general fund to help balance the budget.
Why it matters
Operators in Troy face rising utility overhead as the city seeks to cover increasing costs for pensions, health insurance, and infrastructure while avoiding tax hikes or layoffs. The proposed intra-fund transfer also signals a reliance on utility enterprise funds to bridge general fiscal shortfalls.
The proposed rates would set water costs at $5.43 per 1,000 gallons and sewer costs at $4.27 per 1,000 gallons. Additionally, the city is moving $2.5 million from the water fund to the general fund to support municipal operations.
The players
Troy City Council
The local legislative body responsible for municipal budget approvals and utility rate setting in Troy, New York.
The details
The city utilizes enterprise funds to keep utility financial activities separate from the general fund, though this structure allows for inter-fund transfers like the one currently under review. Funds raised are intended to support ongoing capital projects, specifically lead pipe replacements and the installation of sewer cameras. These hikes follow pressure from rising operational costs, including city-wide insurance premiums and pension obligations.
Timeline
October 29, 2026: The city council held a public budget hearing regarding the proposed utility rate adjustments.
Market Landscape
Most municipalities utilize enterprise fund accounting to ensure utility fees are ring-fenced for specific infrastructure, such as pipe replacement. Troy's proposed transfer of $2.5 million to the general fund deviates from this model by treating utility surpluses as a primary fiscal balancing tool.
Local business owners should adjust mid-term operational budgets to account for a potential 10 percent increase in water and sewer utility expenses. Firms with high water usage should review current consumption patterns to identify potential efficiencies before these rates take effect.
The takeaway
The proposed rate hikes shift a portion of the city's general fiscal burden directly onto high-volume utility users. Business operators should track the upcoming final council vote to determine when these new costs will be reflected in their monthly billing cycles.
Further reading
For more on local utility pricing shifts, see Utilities.
Source note: This article includes information reported by Troy Record.
Live Poll
Should municipal water and sewer fees be used to fund general city budget expenses?
