Water, Sewer Rates Remain Unchanged … for now

Water, Sewer Rates Remain Unchanged … for now

During its regular meeting, the Starkville elders and officials decided against revising the rates for water and sewer utilities, thus, leaving them unchanged for the moment. The council members decided to postpone the request for any changes in these rates until the ensuing meeting, scheduled for September 13.

Increasing Rates Revisited

The officelanders indicated that an increase in rates was indeed required, however, the proposed magnitude for such a change made them hesitate. The General Manager of Starkville Utilities outlined the planned improvements and urged the board to consider escalating the variable rates for water and sewer services to support these improvements. Additional revenue of at least $2 million from sewer services and $1 million from water services is sought annually.

Proposed Changes

The proposed changes consist of a new base rate of $8.50 for the initial 1,000 gallons of water usage, following which an additional $5 for every subsequent 1,000 gallons of water would be imposed. The new sewer base rate was set at $10.75 with a variable rate of $6.50. To put this in perspective, a customer using around 3,000 gallons of water per month will witness an increase of $11.68 in their bill.

However, the elder members insisted on scrutinizing more details and exploring other options before sanctioning such increases. One alderman emphasized the need to be sensitive to the fact that the proposed rate revision represents almost a 42% increase for consumers.

A Compromise

One of the alderwomen put forth a compromise, suggesting increasing the base rates for both services, but postponing the increase in variable rates. “We need to take a moment before deciding on the variable rates increase and wait for more clarification. Especially regarding the issues revolving around water loss in the city,” she said.

A study conducted in June revealed that 45% of the water produced in the city is lost each day due to non-revenue usage. The motion for the compromise, however, was not seconded, and hence, died.

The Essence of Discussion

The board has unanimously agreed to further discuss this issue during their following work session on September 17. Despite the concerns and hesitation regarding the rate increase, the necessity of the proposed projects was recognized. The General Manager pointed out, “The softest impact can be achieved through appropriate rate design, and these suggested projects are critical, leaving us with no alternatives but to move forward.

Finally, the board also approved the budget for Fiscal Year 2025, indicating the commencement of necessary strategic steps and the consideration of changes, although gradual, for the betterment of the city.