Starkville Halts Plan to Increase Water, Sewer Rates Pending Further Review

Starkville Halts Plan to Increase Water, Sewer Rates Pending Further Review

In a recent Board of Alderman meeting in Starkville, it was unanimously decided that the proposed increase in water and sewer rates will be postponed. The board is planning to discuss the matter in a work session. While the members agreed on the need for a rate hike to finance improvement projects for the city’s utilities department, the magnitude of the proposed increase caused some reservations.

The Starkville Utilities General Manager had earlier proposed raising base and variable rates for water and sewer to help raise funds for the department’s capital improvement plan. This plan necessitates an additional $2 million in sewer revenue and a further $1 million from water revenue annually.

The Proposed Rate Hike

The proposal includes a new base water rate of $8.50 for the initial 1,000 gallons and an additional $5 for each subsequent 1,000 gallons. For sewer services, the proposed increase sets the base rate at $10.75 along with a variable rate of $6.50. The current rates stand at a base rate of $6 and a variable rate of $4.50 for both utilities. If the proposed rates were to come into effect, a customer using 3,000 gallons of water/sewer per month would see an increase of $11.68 in their bills. For a 4,000-gallon user, this increase would stand at $13.85.

What the Board had to Say

Alderwoman representing Ward 2 acknowledged the necessity of the proposed increment, stating there was a clear need for this. However, she, along with other board members, emphasized the need to ensure that the rates were ‘reasonable and prudent’. Another alderman voiced concerns about the nearly 42% across-the-board increase for consumers, and recommended further scrutiny and exploration of other options.

The Need for Improvement Projects

The capital improvements under the plan include the replacement of six aerators in Starkville Utilities’ wastewater treatment plant that failed in 2019. The additional revenue from the rate hike would also fund a new production well. There was unanimous agreement that forgoing the rate hike would only set the city further back in updating its already aging systems. It was acknowledged that the city is already behind and that urgent repairs are needed for existing infrastructure.

A Look Ahead

After extended deliberation, the matter of the rate increase was tabled for further discussion. Despite understanding the board’s concerns, the need for the improvement projects was reiterated, noting the importance of proceeding with the planned projects.

The same meeting saw the approval of the Fiscal Year 2025 budget, passed by a vote of 6-1.