Athens reviews utility rate study that would remove free water block and raise sewer caps

City staff on Jan. 12 presented a utility rate study recommending changes to how Athens charges for water and wastewater service, changes that the city says are intended to make capital costs and operating expenses more transparent.

Assistant City Manager Mandie Quigg told the council that NewGen Strategies prepared the study and that the consultant modeled several scenarios for 2026–2029. Key proposals include eliminating the current 'free' 2,000 gallons included in the base rate, raising the residential sewer maximum billable gallons from 7,000 to 15,000 and separating capital-improvement costs into a fixed monthly fee to clarify how capital is funded.

The study included sample bill calculations using a 3/4-inch meter. Under the presented scenario, a typical customer using 7,000 gallons would see their combined water and wastewater bill rise by about 14% in 2027 and roughly 16% in 2028–29, the presentation showed. Quigg said the study assumes inflation, salary and benefit increases and reflects projects in the city's capital improvement plan.

Mayor Aaron Smith asked about implementation timing; Quigg said staff would review the study and consider incremental steps before any rate change is adopted. No vote was taken on rates at the Jan. 12 meeting.

The study as presented does not set final rates; council members and staff emphasized that any change would be presented to the public and adopted through the city’s formal rate-setting process. The city did not provide an implementation date at the meeting.