Council approves first reading of FY26 water and sewer rate increases

Murfreesboro City Council approved first reading May 22 of an ordinance to raise water and sewer rates for fiscal year 2026 after a staff presentation explaining the recommended increases and the financial rationale.

A city staff presenter described the rate recommendation as informed by the city—s most recent cost-of-service study and projected capital needs, including approximately $120,000,000 of upcoming debt. The presenter said the city will continue to use reserves where possible but will not draw reserves below a 12-month operating expense target of $33,000,000.

The staff presentation detailed specific changes: the residential minimum monthly water charge would increase from $11.00 to $11.25; the water commodity charge would rise from $3.70 to $3.75 per unit. The presenter said the combined average residential water and sewer monthly bill under the FY26 proposal would be $71.01. Staff estimated the proposed water minimum and commodity increases would yield roughly $330,000 in additional revenue from existing customers and growth; sewer minimum increases were projected to yield roughly $853,000 in additional revenue.

After the presentation council moved the ordinance (25-0-17) on first reading. The roll-call vote was recorded as unanimous on first reading. The ordinance will return for subsequent readings as required by city ordinance.