Montgomery council adopts phased water and sewer rate increases

Montgomery — The Montgomery City Council on Nov. 10 adopted an ordinance amending city code section 90-56 to implement phased increases in water and sewer service rates.

City staff described the changes as a "stair-step" approach designed to spread the cost increase over time while still meeting the city’s bond and revenue requirements. City staff told council the proposal would reduce the immediate increase for single-family minimum bills from roughly $7 to $4 per month and reduce the impact on the average single-family bill from roughly $12 to $7 per month.

"We ran a couple scenarios. We talked to a financial advisor to see how much we could step into this in order to still be able to safely borrow what we need," a city staff member said during the presentation, explaining the phased timing and that the next rate step would be considered next fall.

Staff also estimated roughly $200,000 in additional annual revenue under the plan and said the stair-step approach preserved higher usage rates for large-volume commercial users. Council members pressed staff on implementation timing; staff said the ordinance would take effect on passage and that the new charges would appear on customers’ next billing cycles depending on billing timing.

Council approved the ordinance as presented by voice vote.

The city indicated it would monitor revenues and revisit rate adjustments after the next budget season. The ordinance includes standard severability language and an effective-date provision consistent with municipal practice.