Kingsport adopts new water and sewer rate structure; base water charge set at $10.72
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Summary
The board approved water and sewer budgets that move the utilities to a simplified rate structure: a $10.72 monthly base for typical inside-city water customers and a consumption charge held at $2.87 per 1,000 gallons; sewer customers face a $3.74 increase plus a 2.3% rate adjustment. Both ordinances passed unanimously 6-0.
The Kingsport Board of Mayor and Alderman approved water and wastewater budgets on first reading June 3 that include a transition to a new, clearer rate structure for customers and immediate rate adjustments intended to fund capital and regulatory obligations. Both measures passed unanimously, 6-0.
Deputy City Manager Ryan McReynolds, who presented the utility packages, said the FY2026 water proposal moves the utility to a two‑part rate: a flat base charge for typical in‑city residential service and a per‑thousand‑gallons consumption charge. He said “to have water at your house, you will pay $10.72 a month” for a 5/8‑inch meter, and the board will hold the consumption rate at $2.87 per 1,000 gallons for the coming year. McReynolds described the change as the final transition toward a transparent “gold‑standard” structure that staff and consultants recommended.
On the wastewater side, staff proposed and the board adopted a change that McReynolds summarized as “a $3.74 impact plus a 2.3% increase” for inside‑city customers; outside‑city customers face a comparable base increase (he noted a $5.60 increase for some outside customers) plus the percentage adjustment. McReynolds said the utilities are capital‑intensive — roughly 83% of water/sewer cash flow goes to capital and operating costs (power, chemicals, pipe replacement and pump stations) and about 17% to personnel — and that the changes are intended to put the utilities on a sustainable funding path. He estimated the average combined water and sewer bill under the new structure would be about $62.42 for a 3,000‑gallon monthly user.
Board members asked technical and consumer‑facing questions during the presentations. Aldermen sought plain‑language explanations customers can use when comparing Kingsport to neighboring systems: McReynolds explained that Kingsport’s higher sewer costs reflect terrain, depth and the number of lift stations — the city operates more than 100 lift stations — and heavier capital needs to meet permit and regulatory requirements.
Both the water and sewer proposals were put to separate ordinances for first reading and were approved by voice vote, recorded as 6-0.
Why it matters: The utilities are enterprise funds that must be self‑supporting; rate changes fund ongoing capital work such as water‑line replacement, pump‑station upgrades and wastewater‑plant investments needed to comply with regulatory permits and limit future system emergencies.
What’s next: The adopted FY2026 rate and budget ordinances will be final if approved on second reading; staff said this year is the last transition year into the updated rate structure that customers will see reflected on future bills.
