By BOB SHRALUKA
WZBD.com
“Inflation” is a word much of the country is dealing with these days, and it reared its ugly head at the latest meeting of Decatur City Council.
Basically, the city’s water and sewage revenues are no longer keeping up with expenses and so a consulting firm has recommended two rates increases in each department.
Jennifer Wilson and Jenessa Carter of Crowe LLP presented all manner of numbers to city council, all of which pointed to the need for utility rate hikes to keep up with various expenses, capital expenses and debt service.
No action was taken by council, but it’s obvious that some hikes are not far in the future.
Wilson and Carter dug into the city’s incoming and outgoing in recent years.
Wilson, who did the water study, said that in 2022 the city was no longer bringing in enough revenue to cover expenses. Her study recommends an immediate rate boost of 28% and another 12% rise in January of 2026.
For the average water customer, that would mean an increase of $12.42 per month, followed by a hike of $6.83 to start 2026. That would translate to a combined $19.25 more a month.
“Everybody has been hit by inflation,” Mayor Dan Rickord said. “It (now) takes a little over $4 million to run the water department and we’re bringing in about $3 million.”
Carter’s recommendations were only slightly better – smaller increases in sewage rates.
Her study called for a 10% increase beginning the first of the year, followed by a 14% boost in January of 2026.
That would bring for the average sewage customer in Decatur a rise of $4.68 followed by $7.12, a total of $11.80.
Those numbers would be $7.02 and $10.79, a total of $17.81, for customers outside the city’s boundaries.
“There are a whole lot of cities working on increases; it’s the effects of inflation,” Rickord said.
Crowe LLP is a public accounting and consulting firm that provides audit, tax, and consulting services to public and private entities.
About the Author
