Budgets
Overview
MSD needs to balance its budget, just like everyone else. We begin this process every summer and complete it by November or December for the coming year.
We have two budgets:
- Operating Budget - funding needed to support MSD's operation of more than 3,000 miles of public sewers and interceptors, 100 pump stations, 9 wastewater treatment plants, 9 wet weather facilities, and the Lick Run Greenway in South Fairmount. The Operating budget includes personnel costs and non-personnel costs such as equipment and tools, chemicals, fuel, electricity, natural gas, and fleet vehicles. It also includes debt service, which is the repayment of debt (principal and interest payments) on bonds and loans used to fund Capital Improvement Program (CIP) projects. Our Operating budget is funded through customer sewer bills.
- Capital Budget - funding for capital items like new sewers, upgrades to treatment plants, and other assets. The budget also includes wet weather projects mandated by our Wet Weather Program to reduce sewer overflows into local streams and rivers. Our capital budget is funded through bonds, low-interest loans through the Ohio Water Development Authority, and cash.
The Hamilton County Board of County Commissioners (BoCC) is responsible for approving MSD's budgets and setting rates. As part of the process, MSD typically proposes budgets to the BoCC in August followed by meetings over the next several months to finetune the proposals. The BoCC hosts a public hearing(s) in November or December prior to final approval of the budgets.
2026 Approved Operating Budget
The BoCC approved MSD's 2026 Operating Budget of $255.9 million on December 18, 2025.
The budget includes:
- $74.6 million for personnel
- $77.3 million for non-personnel (e.g., chemicals, equipment)
- $6.9 million for General Fund Overhead (GFOH), fleet vehicles, and Office Technology Equipment Allowance (OTEA)
- $8.2 million for the Sewer Backup (SBU) Program (non-personnel)
- $89 million for debt payment
2026 Approved Capital Budget
The BoCC approved MSD's 2026 Capital Budget of $153.6 million on December 18, 2025.
The budget includes:
- $69.2 million for construction of 12 projects, including the East Branch Ohio River Interceptor Extension & CSO 489 and 432 Separation project in Queensgate and the Barrington Hills Pump Station Eliminations project in Green Township.
- $44.2 million for five allowances: Critical Asset Management, Main Sewer Renewal Program, Manhole Renewal Program Prioritized Wastewater Collection System Asset Management, and Programmatic Contingency.
- $40.2 million for planning, design, and easement acquisitions for 10 projects, including the Little Miami WWTP High-Rate Treatment Facility in Columbia-Tusculum/East End, and eight allowances including Hamilton County utility oversight, HSTS eliminations, and MSD labor.
2026 Approved Revision to Sewer Rate
To achieve a 4.5% increase in revenue to support our 2026 budgets, the BoCC approved an adjustment to the Commodity Charge on December 18, 2025.
- The previous two-tier rate is now one universal rate for all customers. With this change, residential sewer bills will generally stay the same or see a modest decrease. Industrial and commercial bills may see an increase depending on water usage.
- There is no increase to the Minimum Base Charge, Surcharge rates, or Industrial Pretreatment program annual fees
Note: The average single-family residential household (which uses 5 CCF of water/month and has a 5/8th inch water meter) spends about $56/month on their sewer bill.
MSD offers a sewer rate discount to low-income seniors who own their own homes. Learn more
Interested in how your sewer bill is calculated? Learn more