Villa Rica council approves 20% increase to water and sewer consumption charges, simplifies tiers

The Villa Rica City Council voted unanimously Feb. 11 to adopt a revised water and sewer rate plan that raises consumption charges by 20% while keeping monthly base fees unchanged, and to implement a simplified rate tier structure. City staff said the change is needed to cover higher wholesale water costs and stabilize the utility fund.

Interim Deputy City Manager/CFO Miss Hallman summarized the Carter & Sloope rate study and presented three options. She said the recommended option (Option 2) imposes no increase in the monthly base fee and a 20% increase to water and sewer consumption charges; staff also recommended simplifying the complex existing tier schedule to make bills easier to understand and conserve water.

Miss Hallman explained the drivers: the city buys roughly 45.5% of its water supply from outside suppliers and recently faced a large increase in wholesale costs from a supplier, along with approximately $38.8 million in outstanding system debt (bonds and loans) and $17.5 million in capital improvements in the FY2025 plan. "Staff recommendation is to go with option 2, which again is no increase in the water and sewer base fee, but a 20% increase in the water and sewer consumption charge," she said.

Council discussion ranged from concerns about the affordability of water to support for the consumption-based approach. Councilmember McCoy said a consumption-based increase gives customers more control than raising the base fee. "When you put it on the base, you pay it and you have no control. If it's based on consumption, I can control some of that," she told the meeting.

Following discussion, a council member moved to authorize the simplified water/sewer tier structure and to adopt Option 2 (20% consumption increase) as presented by Carter & Sloope, effective March 2025. The motion passed unanimously.

The city’s financial summary presented at the meeting showed that the water and sewer enterprise fund ran a modest deficit through December 2024 and that staff must ensure the utility fund covers current and future debt-service requirements. Council members and staff reiterated the need to maintain long-term sustainability of the water and sewer enterprise fund while also encouraging conservation through consumption-based billing.

Ending — What to expect: The rate change and simplified tiers take effect in March 2025. Staff said the simplified schedule will make bills easier to read and that the consumption-based approach is intended to support conservation; customers seeking to reduce bills were encouraged to pursue water-saving measures and to contact utility staff with questions.