The Jackson City Council convened on May 27, 2025, to discuss critical updates regarding water and wastewater rate studies, presented by Andy Campbell, a CPA and municipal adviser from Madzinski and Company. The meeting focused on the financial challenges facing the city's water and sewer systems, including the need for rate increases to address inflationary pressures and declining water usage.

The presentation began with an overview of the city's water and sewer rate studies, highlighting that inflation has significantly impacted operational costs. Campbell noted that both the city and its residents are experiencing increased expenses, particularly in chemicals, utilities, and contractual services. He emphasized that while water usage has decreased—partly due to more efficient appliances and colder summers—this has led to reduced revenue for the city, complicating budget management.

Campbell outlined three proposed options for water rate increases. The first option suggests a $5 monthly increase, which would help stabilize the water fund and allow for necessary capital improvements. The second option proposes a $9 increase, while the third option, a $3 increase, would not sufficiently cover operational costs and would require depleting reserves.

For the sewer system, the council is also facing similar financial pressures, with a proposed increase of $6 per month to maintain operations and begin addressing a substantial capital improvement plan estimated at $140 million. The sewer fund has received approximately $8.4 million in grants over the past five years, which has helped keep rates lower than the statewide average.

The council discussed the implications of these rate increases, noting that even with the proposed adjustments, Jackson's rates would remain below the state average. The current combined quarterly bill for a typical homeowner is $190.56, compared to a statewide average of $285.

In conclusion, the council is considering adopting the recommended rate increases to ensure the financial viability of both the water and sewer systems while continuing to seek grants and funding opportunities to minimize the impact on residents. The council plans to revisit these discussions in the coming months as they work towards a sustainable financial strategy for the city's utilities.