Murfreesboro City Council approved first reading May 22 of an ordinance to raise water and sewer rates for fiscal year 2026 after a staff presentation explaining the recommended increases and the financial rationale.

A city staff presenter described the rate recommendation as informed by the city's most recent cost-of-service study and projected capital needs, including approximately $120,000,000 of upcoming debt. The presenter said the city will continue to use reserves where possible but will not draw reserves below a 12-month operating expense target of $33,000,000.

The staff presentation detailed specific changes: the residential minimum monthly water charge would increase from $11.00 to $11.25; the water commodity charge would rise from $3.70 to $3.75 per unit. The presenter said the combined average residential water and sewer monthly bill under the FY26 proposal would be $71.01. Staff estimated the proposed water minimum and commodity increases would yield roughly $330,000 in additional revenue from existing customers and growth; sewer minimum increases were projected to yield roughly $853,000 in additional revenue.

After the presentation council moved the ordinance (25-0-17) on first reading. The roll-call vote was recorded as unanimous on first reading. The ordinance will return for subsequent readings as required by city ordinance.