City Council members in Murfreesboro are considering a proposed increase in water and sewer rates, driven by significant upcoming infrastructure investments and rising operational costs. During the April 10 workshop, officials outlined plans to incur approximately $120 million in debt over the next five years for projects including the Cherry Lane corridor and biosolids processing equipment.

Valerie, the presenter, emphasized the need for a conservative budgeting approach to ensure the city maintains its financial health. The proposed rate adjustments include a 25-cent increase in the minimum monthly bill for both water and sewer services, along with a 5-cent increase in the water commodity rate. These changes are expected to generate an additional $1.18 million in revenue, crucial for covering operational expenses and capital projects.

The council highlighted that while water consumption growth has remained steady at around 3.6% over the past five years, sewer service demand is increasing more rapidly, particularly due to the inclusion of customers from the consolidated utility district. The adjustments aim to prevent under-recovery of costs, ensuring that the city can sustain its services without compromising quality.

As the council prepares to finalize these proposals, the focus remains on balancing the financial needs of the city with the affordability for residents. The anticipated changes will be revisited in light of a new cost of service study set to be completed later this year.