Decatur council adopts water, wastewater study and advances rate ordinance after presentation

The Decatur City Council on Jan. 27 adopted a resolution to accept a five‑year water and wastewater rate study and moved a first reading of an ordinance to implement new rates.

Nugent Strategies consultant Chris Eckert told the council the utility operates as an enterprise fund and must cover fixed costs, maintain reserves for seasonal revenue swings, and reinvest in infrastructure. Eckert said the city has gone several years without a rate adjustment while costs have continued to rise and the city plans substantial capital work that cannot be covered by current rates alone.

The study projects average residential-billing impacts. For a low‑use household measured as 2,000 gallons of water and 2,000 gallons of wastewater, the current combined monthly bill of $59.78 would rise to $66.20 under the plan presented. An “average” residential customer (6,600 gallons water, 4,000 gallons wastewater) now paying $88.81 would see a proposed monthly bill of $100.07. Eckert said the plan includes increases in both the fixed monthly charge and the consumption (variable) charge so the utility can cover debt service and fixed expenses tied to capital projects.

Eckert reviewed the capital needs underlying the recommendations: the study lists roughly $64 million in the top 10 water projects and $167.85 million in wastewater projects across long‑term planning, with an estimated $2.16 million of capital between 2025–2030 identified specifically in the plan that would not be funded entirely by impact fees. The council previously updated impact fees (water impact fee of $4,007.80 and wastewater $9,078.00) to have growth help fund system expansion, Eckert noted, but said rates are still required to maintain reserves and meet standard debt‑service coverage targets (the study uses a 1.25x coverage target).

Council discussion centered on customer impacts and the phasing of increases. Eckert presented multi‑year scenarios and regional comparisons; he emphasized that rates should be revisited annually as budgets and capital plans evolve. After public and council discussion, a council member moved and another seconded adoption of Resolution R2025‑01‑03 to accept the study; the motion passed by voice vote. The ordinance setting new rates was given a first reading (Ordinance 2025‑0203) and will return for a subsequent reading and final action.

The resolution and ordinance language adopted by the council reflect the study’s recommendation to raise both fixed and variable charges for all customer classes; staff said commercial classes and larger meter sizes will also see escalations that align fixed charges with system demand. The ordinance is scheduled to return for final reading and adoption as part of the council’s next ordinance cycle.

Action taken: council adopted Resolution R2025‑01‑03 to accept the water and wastewater rate study (voice vote); council conducted the first reading of Ordinance 2025‑0203 to adopt rates.