Key Facts
• On July 18, 2025, Ashikaga City announced a water rate hike after 30 years.
• Population decline and aging water pipes have worsened financial conditions.
• Rate increase capped at 64%, with implementation expected in fiscal year 2026.
• Water business began in 1931, with a 97.8% coverage rate.
• Revenue has declined since 1990, with the last rate hike in 1996.
• 2024 fiscal year recorded a net loss of ¥51.43 million, the first deficit in 44 years.
• Projected deficit to reach ¥18 billion by 2034 without intervention.
• Cash reserves of ¥1.56 billion and securities of ¥1 billion may deplete by 2029.
• New pricing model estimates total costs of ¥15.1 billion for 2026–2030.
• Current revenue projection of ¥9.2 billion leaves a ¥5.9 billion shortfall.
• Mayor Naohide Hayakawa emphasized the need for reform to ensure future water supply.
Summary
Ashikaga City in Tochigi Prefecture plans to raise water rates for the first time in 30 years, citing financial strain from population decline, aging infrastructure, and rising operational costs. The city’s water business, operating since 1931, has faced declining revenue since 1990, with the last rate adjustment in 1996. A 2024 fiscal year deficit of ¥51.43 million marked the first loss in 44 years, with projections indicating continued deficits reaching ¥18 billion by 2034. Current cash reserves are expected to deplete by 2029. To address this, the city proposes a new pricing model covering costs of ¥15.1 billion for 2026–2030, requiring a 64% rate increase to bridge a ¥5.9 billion shortfall. Mayor Naohide Hayakawa stressed the importance of reforms to secure the water supply for future generations.
