City staff urges reauthorization of 1% municipal option sales tax for water, warns of funding cliff in 2026

Water resources director Melissa Echeverria told council Aug. 11 that the one-percent municipal-option sales tax (MOST) East Point voters approved in 2022 — dedicated to water and sewer infrastructure — will discontinue Sept. 30, 2026 unless reauthorized.

Echeverria said the city has collected $17,016,755.69 to date and used approximately $11,080,548.76 on projects to date, and that the utility program has used MOST funds to reduce system failures and to fund upgrades including granulated activated carbon filters for PFAS treatment. She said the city has reduced water main breaks from an average of about one per week to roughly one per month and has remediated priority brownfield and sewer overflow problems.

Echeverria told council a full water-treatment plant replacement would likely cost tens of millions of dollars (she cited $20–30 million) and estimated $320 million would be required to overhaul the entire system; the MOST funds have paid for major remediation steps and a wing renovation at the 1950-era treatment plant. She said the city already invested about $500,000 of the MOST into granular activated carbon filters and that tests reported non-detectable levels of six PFAS compounds as of April, ahead of 2029 regulatory deadlines.

Staff and the city’s lobbyist recommended placing a reauthorization referendum on the Nov. 4 ballot; the county’s deadline to submit referendum language was reported as Aug. 18 by the city clerk. Staff said College Park recently reauthorized its MOST and Hayville has adopted a resolution supporting a reauthorization effort in the Tri-Cities area; the city manager said staff is coordinating with the clerk, the attorney and the lobbyist to prepare a resolution and ballot language for council action.

Councilmembers asked for a clearer visual explanation of the remaining infrastructure needs and a progress “thermometer” showing how MOST dollars have been spent and gaps remaining; staff said they could provide program-level percentages of pipeline and plant work completed and that they are pursuing grants and federal funding to supplement MOST collections. Several councilmembers expressed support for a reauthorization, subject to final resolution language and filings.

Council instructed staff to work with the clerk and the lobbyist on a resolution and to return to council on Monday (Aug. 18) with the required referendum language and timetable so the city can meet the election filing deadline if council chooses to place the measure on the November ballot.