Jackson City Council postpones decision on proposed water and sewer rate increases after staff presentation

Jackson City Council on May 20 voted to postpone action on a proposed two‑year package of water and wastewater rate increases after a presentation from the city’s rate advisers and follow-up staff briefing.

Andy Campbell, CPA and a registered municipal adviser with Madzinski and Company, told the council the city faces rising operating costs, larger construction and contractor prices, and higher debt service tied to recent state revolving fund projects. “We are recommending option 1,” Campbell said, describing a plan that would raise the typical homeowner’s bill about $11 per month (a $5 monthly water increase and a $6 monthly sewer increase) over two years so the utilities can reach cash‑flow neutrality for operations and debt service before addressing the city’s capital‑improvement backlog.

Campbell and city staff said customer usage has declined over time — driven partly by more efficient appliances and weather variability — which reduced revenue while many fixed costs remain. The presentation identified roughly $32 million in near‑term water capital needs and about $140 million in sewer needs, plus ongoing debt payments tied to 2018 capital bonds and recent state revolving fund projects. Campbell said the city has sought principal forgiveness and other grant funding and has received roughly $28 million in water grants since 2020 and about $8.4 million for sewer in the past five years, which have reduced rate pressure.

Staff described three rate options. Option 3 was characterized as the minimum that would largely draw down reserves; option 1 — the staff recommendation — is intended to stabilize operations within two years while staff continues to pursue grants and scale capital work. Council members pressed staff on why Jackson’s sewer rates are lower than peer communities and on how long the rate plan would be in effect. Staff said the proposal is a two‑year plan (covering fiscal years 2025–26 and 2026–27) and that, if adopted, the changes would take effect July 1.

Council discussion focused on balancing short‑term affordability for residents with the long‑term cost of deferring infrastructure work. Supporters of a prompt vote said delaying would further push needed investments and likely increase long‑term costs; those favoring delay sought more time to solicit constituent input and to explore grant or philanthropic options. After debate the council voted 4‑3 to postpone the rate resolution to the June meeting; the postponement was the formal council action recorded.

The council did not adopt new rates on May 20. Staff said they will return with the item and any further information at the June meeting.

Campbell and staff repeatedly told the council the recommended two‑year approach is intended to stop further drawdown of reserves and to position the utility funds to pursue the many capital projects on the schedule — but that the proposed increases would not fully fund all capital work listed in the city’s capital improvement plan.