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Nutter Fort reviews proposed water rate increase in first reading of Ordinance 2025-04
Summary
At a Nov. 7 workshop, councilors and a consultant reviewed Ordinance 2025-04, which would raise water rates after a FYE2024 cash-flow analysis showed shortfalls and identified Senate Bill 234 and bond covenant risks; no vote was taken.
At a Nov. 7 workshop, the Town of Nutter Fort council reviewed Ordinance 2025-04, a proposed increase to water rates intended to address cash-flow shortfalls identified in the FYE2024 analysis. Mayor Rezin Hudkins IV opened the session at 5:33 p.m. and emphasized the meeting was for discussion only; no action was taken.
Consultant Zack Dobbins of Bennett & Dobbins told councilors the town’s current funds do not meet the requirements of Senate Bill 234 and that failing to meet those requirements could result in an audit finding sent to the Harrison County Prosecutor’s Office. He also said bondholders could require rates to be set at levels that cover debt obligations. Dobbins said that securing the rate increase would put the town’s water rates into median household income (MHI) eligibility for certain grants, potentially unlocking outside funding.
Councilors Charlene Louk, Shawn Spurlock and Rick Lafferty asked follow-up questions about the cash-flow analysis, SB234 compliance and bond coverage; Mayor Hudkins also sought clarifications from the consultant. The workshop record shows the discussion focused on the financial necessity of the increase and on the legal and audit consequences if the town does not act.
The workshop concluded with public comments raising concerns about affordability for residents, and it adjourned by acclamation at approximately 6:36 p.m. The ordinance remains at first reading and no formal motion or vote occurred at this meeting.
