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Athens staff present utility rate study proposing end to 'free' 2,000 gallons and higher sewer cap
Summary
City staff presented a multi-year utility rate study recommending elimination of a 2,000-gallon free allowance, raising residential sewer maximum billable gallons to 15,000, and separating capital costs into a fixed monthly fee; sample bills showed a typical customer's water and wastewater charges rising about 14% in 2027.
City staff on Jan. 12 presented a utility rate study prepared by NewGen Strategies that would change how Athens charges for water and wastewater service and could raise bills for typical customers beginning in 2027.
Assistant City Manager Mandie Quigg said the study models assumptions for inflation, salary and benefit increases, and the city's capital improvement plan. Key proposals included eliminating the 2,000-gallon "free" allowance included in the base rate; updating the residential sewer maximum billable gallons from 7,000 to 15,000 gallons; and moving capital-improvement costs into a separate fixed monthly fee for transparency.
Using a 3/4-inch meter as an example, staff presented sample bill calculations showing a typical customer who uses about 7,000 gallons would see combined water and wastewater bills about 14% higher in 2027 and roughly 16% higher in 2028 and 2029 under the study's sample scenarios. Mayor Aaron Smith said staff will review the proposal carefully and implement changes incrementally with attention to debt-service obligations.
No formal rate changes were adopted at the meeting; City staff will return with additional analysis and recommendations before any ordinance or rate schedule is introduced.
