Mayor Hudkins, consultant outline need for water-rate increase under Senate Bill 234

The Town Council of Nutter Fort met in workshop on Nov. 7 to review Ordinance 2025-04, a proposal to raise water rates. Mayor Rezin Hudkins IV opened the meeting at 5:33 p.m. and said the session was for further discussion; no formal action or vote was planned. Consultant Zack Dobbins of Bennett & Dobbins presented the FYE2024 cash-flow analysis and the financial case for the rate change.

Dobbins told councilors that current revenues do not meet the requirements set out in Senate Bill 234 and that failing to adjust rates could produce an audit finding requiring referral to the Harrison County Prosecutor’s Office. He also said bondholders could demand rate adjustments to ensure debt coverage and that, if adopted, the increase could bring the utility into median-household-income (MHI) thresholds that make it eligible for certain grant programs. Councilors Charlene Louk, Shawn Spurlock and Rick Lafferty asked follow-up questions about the analysis and the legal and bond implications; the transcript records those as clarifying questions rather than formal challenges.

Public comment accompanied the workshop with resident Rick Miller warning councilors that higher bills are "badly affecting" people on fixed incomes and asking the council to weigh affordability impacts. Jennifer Robinson asked a separate question about how Senate Bill 234 applies to the town’s rate-setting. The council did not adopt the ordinance at the workshop; the item remained under review and the meeting adjourned about 6:36 p.m.

The discussion framed three practical constraints for councilors considering the ordinance: statutory compliance under Senate Bill 234, bond-covenant obligations tied to debt service, and the trade-off between revenue stability and household affordability. The council will consider the ordinance again in a future session; no effective date or next meeting was specified in the workshop record.