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Pulaski moves water and sewer rate increase on first reading after municipal rate study
Summary
The Board adopted a water and sewer rate ordinance on first reading to fund recent capital projects and increased depreciation costs; staff cited a $12 million borrowing for upgrades and a wastewater project that bid well over its original budget.
The Pulaski Board of Mayor and Aldermen approved an ordinance on first reading on April 8, 2025, proposing increases in water and sewer rates to cover recent capital improvements and higher operating costs.
Mr. Harrison explained the city developed a capital improvement plan and borrowed $12,000,000 to complete water and sewer upgrades. He said the city used COVID relief and a CDBG block grant to help offset costs, but supply‑chain issues and inflation increased project expenses. "The last project... was budgeted $4,000,000 and we bid it out. It came in $10,000,000," Harrison said, describing higher-than-expected bids for the wastewater treatment plant work. Harrison said the city commissioned the Municipal Technical Advisory Service (MTAS) to conduct a rate study; staff recommended "option 3" from that study and proposed phased increases over five years. Harrison told the board the changes will fund higher depreciation — he cited an increase of about $650,000 — and restore the utility fund's long‑term financial strength.
A motion to consider and approve the ordinance on first reading was made by Mr. Massey and seconded by Mr. Keith. The roll call vote recorded ayes from Massey, Miles, Worsham, Keith, Gentry and Bradley. The board set a public hearing on the water and sewer rate ordinance for April 20 at 12:07 p.m.
No final adoption occurred; the item remains on first reading pending the scheduled public hearing and a second reading.
