Mayor says Comptroller is pressing Alexandria to adopt 20% annual wastewater hikes; resolution read for June 29 meeting

Mayor Rford said the town completed a rate study and that the state Comptroller's Office is requiring the town to follow the study's wastewater recommendations or risk having the budget rejected.

"They actually . . . have said they would not pass our budget unless we did it," Rford said, summarizing the Comptroller's position and adding that the office warned the town it could end up in court if it failed to comply.

The rate study, Rford said, shows wastewater needs at least a 20% increase this year and similar increases in the next two years. The board read a draft resolution, Resolution 2026-0616, that would increase sewer rates by 20% at the start of each fiscal year beginning July 1, with the increases applied each year through 2029.

Board members asked whether the 20% is a single total increase over three years or a compounding 20% per year; the mayor and others confirmed the draft reads as 20% per year (a compounding approach). The resolution was read and members discussed the proposal but no final adoption was recorded during the public portion of the meeting; the resolution hearing was scheduled for Monday, June 29, 2026, at 5:00 p.m.

The mayor said the town was previously subpoenaed by the Comptroller's Office after failing to complete a rate study; he said the town complied and the subpoena was dropped. He said the Comptroller's Office is focused on whether the utility can cover long-term maintenance and capital needs (pumps, pipes, water towers) and that the office may also consider options such as merging the town's utility with a neighboring system.

"They look at it like our water utility needs to be able to take care of itself," Rford said. He mentioned Smith UD and Wilson water as possible providers the Comptroller might view as merger candidates because the town already receives water from neighboring systems.

Related water items discussed included a request from Upper Cumberland for a $6,000 deposit and an upgrade from 200-amp to 400-amp service at a pump station; the board questioned why a longtime customer would now be asked for a deposit and said they would ask Bradley West to look into the request.

During public comment a resident who said they have housed a meter at 250 Sykes Road for more than a decade asked the board to postpone removal of that meter for one month so the town can discuss alternatives. The resident said the meter has provided water access for five families and livestock and described difficulties those families would face obtaining water during normal business hours.

"Given the established use over more than a decade and the essential need this meter serves for multiple households and livestock, I am requesting that this matter be postponed for a minimum until the next city council meeting," the resident wrote and read to the board.

Board members suggested installing a permanent meter at the pump station and adding a camera on the connection; Evan and grant-related staff would review costs, including one grant-related setup the board described as costing about $8,000. The mayor said staff would bring a proposal and the item was deferred until the next meeting to give staff time to assemble options.

What happens next: The board scheduled further consideration of Resolution 2026-0616 for a June 29 meeting; the mayor and staff said they expect continued discussion with the Comptroller's Office and that potential outcomes include rate increases, a negotiated alternative, or in rare cases, a state-directed merger.