Leesburg’s future growth may exceed water usage limitations

By Grace Bennett

The Town of Leesburg has already once this year exceeded its water treatment capacity, and the expansion of high-demand projects such as data centers may trigger the need for expensive utility upgrades.

During a presentation in late 2023, staff pointed out that an increase in funding for water treatment systems was already needed due to a variety of factors—most notably inflation following COVID. Mike Maker, Rate Consultant for the town, listed off a few more causes for the need: “staffing, cost of living adjustments, electricity, and chemicals greater than inflationary increases.”

Director of Public Utilities Amy Wyks confirmed, saying that the costs of chemicals “have more than doubled and tripled over the course of 2020 to 2023 due to COVID and the economics.” As a result, “the current rates that started in 2024 are not sufficient and doesn’t [sic] meet the cash on hand and the debt service covered ratio for the Town.”

Staff worked to find precisely what percentage increase in rates was necessary to sustain and improve water and sewage treatment systems. Initially, a 10.8% increase was calculated, but by adjustments to the Capital Improvement Plan and deferrals of projects, it was altered to a 4.1% rate increase. Staff proposed the new five-year rate plan to the town council, stating that any lower rate increase would not be financially sustainable. Every dollar would count towards combatting inflation and new costs as well as making much-needed progress on improvements.

At the time of the November 2023 meeting, the town council expressed hesitance on the proposal, and the public hearing was left open. But the discussion over rate increases proved to be foreshadowing for a later meeting taking place on July 22, 2024.

On this later date, Amy Wyks stated in a Semi-Annual Report for the capacity of utility plants that an increased number of data centers and other high-capacity water user projects could push water demand above its limitations. 

The Town uses an average of 4.2 million gallons of water per day (mgd), the amount permitted by the water plant being 12.8 mgd. Two new data centers approved at Microsoft’s Compass Creek campus, however, are allocated to pull up to 1.23 mgd and discharge nearly .62 mgd wastewater. 

That—combined with a nearly 2 mgd water demand increase since last summer and a wastewater peak above its 7.5 mgd treatment capacity at least once this year—has urged staff to request funding for utility improvements. Specifically, they are asking the council to authorize a $1.7 million contract. The contract would permit beginning the design of sewage treatment system upgrades to address the solids processing capacity concern, which might otherwise reach its limit by 2028.

While it would be preferable not to increase the utility rates to cover the costs mentioned in late 2023 and to upgrade the current systems, current buildout projections risk requiring water far above limitations. These projections increase daily demand to 6.2 mgd with 10 mgd potentially needed during peak periods. 

So, in addition to the contract, Wyks has advised discretion in providing water treatment to future Leesburg projects. “Council should not extend water and sewer services at this time to potential development projects (residential and/or commercial) outside the Town’s corporate limits or Joint Land Management Area with exception of Compass Creek,” she stated in her report. “In addition, Council should remain cautious in agreeing to any future Boundary Line Adjustments until consumption data and demand trends are better known.”

If a water plant’s demand reaches 80% of its capacity during three consecutive months, an expansion project or explanation of limited-service area growth must be submitted to the Virginia Department of Health. Similarly, if a wastewater plant’s average flow exceeds 95%, then a plan of action for compliance must be submitted to the Virginia Department of Environmental Quality.

With these two realities in mind, staff is urging the contract to be seriously considered so as to prevent shortages in water utility services—especially during this particularly dry season of 2024.

This article has been updated to remove mention of a July 29 town council meeting.