Homes and businesses that get their water from the City of Midway can expect a rate increase of approximately 44%, likely by March. That’s according to Bill Powell, a consultant from the Georgia Rural Water Association, which helps cities set water and sewer rates.
Powell presented the recommended rate increase during a workshop at City Hall on Feb. 6. Mayor Malcolm Williams emphasizes these figures are preliminary estimates only and that the council has not yet voted to approve these specific numbers.
Existing rates for customers inside the city using an average of 4,000 gallons per month shows current rates of $43 for water and $41 for sewer, totaling $84.
But the study is recommending an increase of $51 for water and $71 for sewer, totaling $122 — a 45% increase for that same 4,000 gallons of water.
How rates are set
Midway has two classes of rates: inside and outside the city limits. Each of those classes is broken into water and sewer rates.
Customers inside the City of Midway can expect bills to jump roughly about 40 to 48 percent by spring, depending on how much water they use. Outside the city, that increase would be about 41% to 47%.
Rates rise every 1,000 gallons. Customers in the city who use zero to just under 1,000 gallons pay about $52 for water and sewer. The recommended new rate is about $73 — another $21 each month.
Additional costs may include things like “tap-in fees,” which developers pay for each new home or business connection to the system.
The mayor and council clearly weren’t thrilled by the prospect of customers paying higher bills. But the city needs to pay off existing debt, is installing a new water tower and water lines, and owes the General Fund for money borrowed for the Water Fund over time.
Powell said Midway’s current operating budget for water is about $490,000 but needs to be at $562,450 in order to cover money borrowed from the General Fund: “We’re going to have to start paying that back at $57,450 a year,” Powell said. The city water fund also has only a $15,000 cushion, which Powell said a single fire hydrant replacement could wipe out. Midway’s sewer operating budget is $605,000 right now.
What the city needs, according to Powell, is a total annual operating budget for sewer and water of almost $2.2 million: “You gotta generate that every year,” he said. “Operate your water and sewer system and pay your debt service.”
The city is paying off about $35,000 annually for an “old bond,” according to Powell, plus another $12,000 per year for a well and about $156,000 for “the meter project that y’all got just about completed.”
Councilwoman Rhonda Thomas and Mayor Pro Tem Annie Foskey expressed concern for how higher rates would impact residents and how soon those rates might take effect.
“I mean, me personally, I don’t want a 40% increase next month,” Thomas said.
The next rate workshop is set for 5 p.m. Feb. 23 at Midway City Hall, 41 Charlie Butler Road.
Williams said the city encourages customers to take water-saving measures, such as checking to make sure toilet tank flaps, faucets, and other water fixtures aren’t leaking.