Water and Sewer Rates Hold Steady in Starkville
The residents of Starkville breathed a sigh of relief during a regular meeting held on Tuesday, when the Board of Alderman unanimously voted to defer a proposed hike in water and sewer rates until further discussions.
Acknowledging the Need for a Rate Increase
The board concurred that a rate increase was necessary, principally to cover the costs of pending utility infrastructure projects. However, the proposed size of the increase dampened enthusiasm. According to Ward 2 Alderwoman Sandra Sistrunk, while the necessity for an increase was not disputed, the board struggled to arrive at reasonable and prudent amounts that would facilitate ongoing projects.
Looking Towards Infrastructure Improvements
The Starkville Utilities General Manager, Edward Kemp, had previously proposed an adjustment in the base and variable rates in order to fund the company’s capital improvement plan. The plan, which would see an overhaul of utility infrastructure, requires at least $2 million in additional sewer revenue and $1 million in additional water revenue each year.
Kemp’s proposed rates were an increase in base water rates to $8.50 for the first 1,000 gallons and an additional $5 for each additional 1,000 gallons. The proposed base rate for sewer would be $10.75 with a variable rate of $6.50. The proposed increase translates to a monthly water and sewer bill increase by roughly $12 for a household using 3,000 gallons and about $14 for a 4,000-gallon user.
Compromise and Further Discussions
Amidst the pressing needs of funding the utility’s capital improvement projects, which include the replacement of six aerators and the construction of a new production well, are concerns of ratepayers. Ward 5 Alderman Hamp Beatty expressed the board’s responsibility to balance the financial implications on consumers, which would be a 42% increase across the board, with the city’s utility needs.
As a compromise, Alderwoman Sistrunk proposed to increase the base rates for both utilities and hold off on any increases to the variable rates until further discussions were held. However, the proposal was not seconded. Other plans, including the option to increase the proposed sewer base and delay the rest of the increases, were also put forward but did not receive support.
Going Forward
The Board agreed to table the matter till its next meeting in September, in order to facilitate more discussions and a closer look into the proposed plans. Despite the uncertainties surrounding the rate increases, Edward Kemp emphasized the urgency of the improvement projects and the importance of addressing them. He also assured residents that the board will continue to explore all possible ways to design the rates in such a way that the impact on the consumers is minimal.
The Challenge of Aging Systems
Rightly so, the city of Starkville is currently faced with aging utility infrastructure and any delay in their upgrade puts the city at risk of more breakdowns, which was pointed out by Mayor Lynn Spruill. Thus, making sure the rates are increased in a way that balances the financial requirement for the capital improvement project and the affordability for the consumers would indeed be a critical issue to be addressed in the coming months.
