Title
Hold a public hearing and consider an ordinance amending the Code of Ordinances Chapter 30, Water, Sewers and Sewage Disposal, to amend residential and commercial water rates and residential sewer rates.
Body
DATE: September 2, 2025
TO: Kent Cagle, City Manager
FROM: Jeffery Reynolds, Executive Director of Public Works
SUBJECT: Water and Sewer Ordinance Rate Amendments
BACKGROUND AND FINDINGS:
On July 7, 2020, City Council received the results of the 2020 Water and Sewer Rate Study. The study found that the City's water revenues were insufficient to fully fund the projected expenses over the next five years. City Council deferred a rate adjustment at the time due to the pandemic.
In the recent Water & Sewer five-year rate analysis it was also recommended to implement a phased approach to adjusting the base rate paid on different meter sizes by commercial customers to be in line with the American Water Works Association (AWWA) recommendation. The first phase adjustment was included in the fiscal year (FY) 2023 Budget, the second phase adjustment was included in the FY 2024 Budget, phase three was included in the FY 2025 Budget, and phase four is included in the proposed FY 2026 Budget.
The last residential water rate increase took place in FY 2022 and the top two volumetric tiers were increased in the FY 2025 budget. The FY 2026 Budget includes an increase to the residential water rates, as well as an increase to the three-tier volumetric rates to encourage water conservation. This includes a $0.50 increase to the base water bill, making the standard rate $15.54 a month and includes up to 2,000 gallons. All volumetric rates are based on each additional 1,000 gallons of water. Therefore, tier one (2,001 - 15,000 gallons) will see a 3.15% ($0.11) increase, tier two (15,001 - 30,000 gallons) will see a 5.16% ($0.23) increase, and tier three (30,001 gallons and above) will see a 5.03% ($0.28) increase.
Additionally, in the proposed FY 2026 Budg...
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