City Council proposes rate hikes to address $120 million debt and capital project costs

The Murfreesboro Water Resources Board is proposing a significant rate increase to address a staggering $120 million in debt, primarily aimed at funding critical infrastructure projects. During a recent meeting, officials outlined plans to enhance the Cherry Lane corridor and upgrade solids processing equipment, while also preparing for future expansions.

The proposed increase includes a 25-cent hike in the minimum monthly bill for residential water meters, which is expected to generate an additional $330,000 in revenue over the next year. For sewer services, a similar increase is projected to bring in approximately $853,000, leading to a combined total of $1.18 million in new funds from both water and sewer rate adjustments.

Despite these increases, officials emphasized the importance of maintaining a secure financial reserve, aiming to keep at least $30 million on hand to cover operational expenses. The board noted that while water consumption has remained stable, sewer usage has seen a notable growth of 12.3% over the past five years, largely due to service expansions in consolidated utility districts.

As construction costs continue to rise, the board is committed to using reserves judiciously while ensuring that essential projects move forward. The proposed rate adjustments will be further evaluated in light of an upcoming cost of service study, which could influence future pricing strategies.