DeKalb CEO proposes 10% annual rate increase for 10 years to fund water, sewer fixes under consent decree

DeKalb County Chief Executive Officer Lorraine Cochran Johnson on Tuesday presented a proposed 10% annual rate increase for 10 years — described in the presentation as a “10-by-10” plan — to generate revenue for long-deferred repairs to the county’s water and sewer system and to meet obligations under a modified consent decree.

The proposal would fund capital investments and ongoing work on the county’s aging system, including the Scott Candler water treatment plant and more than 2,500 miles of sewer pipe, Johnson said. "Addressing these issues requires funding and that means a rate increase to implement repairs that will ensure reliable services for generations to come," Johnson said during the presentation.

The CEO and county staff said the county has averaged about 950 water main breaks per year over the last decade and that roughly one-third of the sewer pipes need rehabilitation. Johnson said DeKalb is unique in the metro area for operating with a single water source and treatment facility and that parts of the Scott Candler plant date to the 1940s. The county’s investments since 2017 were described in the presentation as including replacement of some mains and remediation work, but staff said more sustained funding is needed to meet federal compliance deadlines under the modified consent decree.

Why it matters: County staff said failing to secure sufficient funding could jeopardize compliance deadlines, harm the county’s credit rating and increase borrowing costs. The CEO’s presentation said the 10-by-10 plan is intended to produce revenue sufficient to meet the consent decree’s requirements and to continue a capital improvement program that, staff project, would create thousands of jobs and support economic development.

Key details and safeguards

- Structure: The substitute item circulated to commissioners proposes a 10% annual rate increase for 10 years (referred to in the presentation as "10-by-10"). The CEO said the structure was recommended by infrastructure partners because smaller, shorter increases would be insufficient to meet obligations.

- Assistance: Johnson said the county will expand and continue programs to prevent the rate increase from exceeding an estimated 1.5% of household income for many customers. The presentation and staff remarks described an updated DeKalb Cares assistance program and additional discounts for very low-income households; Director Diane McNabb said, under the program parameters presented, a family of four with an income of $32,895 would be eligible for a 25% discount, and a family with a median income (the presentation used $54,825 as a reference) would be eligible for a 10% discount so as to keep bills near the cited 1.5% income metric.

- Targeted outreach and review: Johnson said the county will hold a series of town halls (north, central and south), a robo-town-hall and other public outreach; staff will brief the DeKalb Municipal Association and run a special PWI (Public Works & Infrastructure) meeting focusing on customer assistance and small-business relief. The CEO asked for a “due pass” recommendation from PWI when the matter returns.

- Additional funding sources: Staff listed potential low-cost loans (WIFIA — Water Infrastructure Finance and Innovation Act — and Georgia Environmental Financing options described in the presentation as "GIFA") and federal grant opportunities. Johnson said the county has been allocated approximately $40 million in federal grant funds and credited U.S. Senators Jon Ossoff and Raphael Warnock and Congressman Hank Johnson for assistance in securing those funds. The county also plans to retain a dedicated procurement firm to pursue grants and other federal/state funding.

Board process and next steps

The item was presented as a substitute that will be taken up in PWI and returned to the Board of Commissioners for a formal vote; no final Board vote occurred at the January 21 committee meeting. CEO Cochran Johnson said she would schedule town halls and additional briefings as early as next week and asked commissioners to include outreach materials in their district communications.

What commissioners asked and staff responses

Commissioner Ladina Bolton asked how the county would verify that residents would not exceed the 1.5%-of-income measure; Johnson said staff used median-income assumptions and that the assistance program would allow the county to adjust bills for qualifying residents. Bolton asked about the program’s maximum contribution; staff replied that awards would be handled case by case and depend on household need. Commissioners also asked whether the 10-by-10 would pay for all infrastructure needs; staff said it would not pay for all possible future needs but is projected to provide the revenue necessary to meet current consent-decree requirements and to stabilize the system while additional funding is pursued.

Commissioner Robert Patrick asked whether the staff estimate that about 10% of residents would be eligible for assistance referred to actual ratepayers; staff clarified that the 10% estimate is an eligibility estimate based on demographic data and that the share of eligible households that are direct DeKalb water ratepayers is likely lower.

Quotes

"Together, we can secure a safe and reliable water and sewer system for our future. It's time to act," CEO Lorraine Cochran Johnson said during the video and presentation.

"We will exercise due diligence...and it is their sole responsibility to get out there, procure funds, and ensure that we are well prepared to meet all of the terms of the consent decree," Johnson said when describing plans to hire a firm to pursue outside funding.

Ending

The Board did not vote on the rate increase at the committee meeting. Staff will present the substitute 10-by-10 item to the Public Works & Infrastructure Committee for recommendation and hold public town halls and workshops before returning the matter to the full Board for a future vote.