Henderson approves water and sewer rate increases to shore up utility funds

The Henderson City Council on May 12 unanimously approved a two-year schedule of increases for water and sewer rates after a presentation from Raftelis senior manager Will Kerr and Water Resources Director Christy Lipscomb.

Kerr said the water and sewer funds are not sustainable at current rates and recommended a 13.5% increase in the water fund and a 7% increase in the sewer fund to cover expenses and enable reinvestment, including future work tied to the Kerr Lake Regional Water expansion. The recommendation also includes moving from a declining block rate structure to a uniform volumetric rate and reducing the minimum allowance to promote conservation.

Officials presented an example of residential impact: a typical residential customer could expect a $2.25 increase in the first year and an additional $5.00 in the second year. Councilmember Garry D. Daeke voiced concerns about the effect on residents already struggling to pay bills; Councilmember Tami Walker asked whether the updated numbers matched the models presented in September, and staff said the same models were used with updated spring figures.

Council approved Resolution 25-25 to set the water and sewer rates. Staff noted rates have not been adjusted since 2019 and that even after the increases the city intends to keep services affordable while building reserves for system maintenance and large capital projects.

The minutes record the study, unanimous approval of the resolution, and staff statements that commercial high-volume users will face larger adjustments under the recommended structure. The Council scheduled a first budget work session for May 19, where the rate changes and budget implications will be considered further.