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Pulaski approves water and sewer rate ordinance after multi-year capital plan review
Summary
Council adopted an ordinance updating water and sewer rates, tied to a capital improvement program and borrowing undertaken several years earlier; staff said the change will stabilize utility finances for the coming five years.
The Board of Mayor and Aldermen adopted an ordinance on second reading May 20 to revise water and sewer rates as part of a multi-year capital improvement plan.
City staff told the board the city previously borrowed $12 million to fund water and sewer capital projects. Staff said the utility used about $2.2 million in COVID-related funds for a water-treatment plant and applied for additional grants (discussed in the meeting as approximately $600,000) to offset costs. Staff described an ongoing I&I (inflow and infiltration) project expected to begin soon and said increases in chemical and personnel costs also contributed to the recommendation.
An external advisory firm completed a rate study and presented several options; the board selected the plan labeled "option 3" in the study. Staff described option 3 as holding a small freeze for residential customers while phasing increases for commercial and utility-scale accounts over five years. The ordinance on second reading implementing the selected option passed on a roll-call vote.
Board members discussed the estimated monthly impact on a typical household (staff cited about a dollar or two per month for some customers) and acknowledged social-media concern about percentage figures referenced during the public discussion. The meeting record shows board approval of the ordinance and no public speakers during the related hearing.
Staff said the rate structure changes are intended to maintain utility finances and to provide a predictable revenue path during the capital program’s remaining timeline.
