City warns of utility insolvency without rate action; work session and public hearing planned

City staff told the Board of Aldermen that Willard’s water and sewer enterprise funds are at risk of insolvency by mid-2026 unless the city implements rate adjustments or other measures to shore up revenue.

Officials recommended scheduling a work study to review rate-model options and to treat the rate hearing with urgency. Staff said the rate models presented would generate revenue but that the longer the city waits, the longer it will take to produce the necessary funds to invest in infrastructure and maintain service. Examples were cited of other municipalities where utilities were sold and later experienced significant rate increases; staff referred to Bolivar as a case study and noted one three-year increase that ultimately led to a large rate jump.

The board discussed publication and notice requirements for hearings and considered calling a special meeting to meet the statutory 30-day notice requirement; staff also discussed virtual-attendance optics and the need for visible cameras if members participate remotely and cast votes. The city plans to publish notices, send robocalls and use other outreach to notify customers of the hearing and potential rate changes. Staff also noted plans to recruit for an imminent personnel vacancy in administration (Janice’s resignation effective Jan. 31).