Council hears rate study; consultant recommends 8.25% water increase, wastewater hikes resume Oct. 2025 and April 2026

A NewGen Strategies and Solutions consultant told the Paris City Council on June 9 that the city should raise retail water rates by 8.25% and continue previously adopted wastewater increases scheduled for October 2025 and April 2026 to meet the city’s rate maintenance policy and debt obligations.

The council heard the findings from Chris Seggert of NewGen, who said, “we do find that, retail water rates are insufficient at this time. We are recommending that you consider an 8 and 1 quarter or 8.25% increase in water rates.” Seggert said that operating reserves have fallen and debt-service coverage is insufficient under current water rates.

The recommendation follows the city’s rate maintenance policy, adopted in 2010, which Seggert said exists to ensure enterprise funds generate revenues to cover operating costs, debt service and capital reinvestment. He reminded the council that wastewater multi-year increases were set in a 2022 ordinance tied to the wastewater treatment plant project; those sewer increases were paused but will pick up again on the dates in the ordinance.

Seggert showed examples of monthly impacts under the proposed water change: a 2,000-gallon residential user would see roughly a $1.41 monthly increase, a 5,000-gallon residential user about $3.10 per month, and a 10,000-gallon user about $5.90 per month. He also showed a comparison index (the St. Louis Fed’s Water, Sewer and Trash Collection Index) and noted the city remains below what simple inflation-tracking would have produced since 2022.

Council members asked about options to reduce costs and whether staff had pursued every efficiency. Seggert and staff said they had reviewed operations and that much of the pressure on rates is tied to debt from the wastewater treatment-plant project. He said spreading future fixed costs across new development could moderate unit rates over time but noted the debt schedule remains the primary driver now.

No formal council action was taken on the water-rate recommendation at the June 9 meeting; Seggert said contract customers’ rates will take effect automatically under the contracts and that any council action would be related to retail rates for non-contract customers.

The council followed the presentation with questions about timing and sequencing; Seggert reiterated the spacing of increases was intended to reduce rate shock for residents.

The council did not vote on new retail water rates at the meeting; staff will bring ordinance language or a rate schedule if the council decides to act in a future meeting.