New city water, sewer rates approved

After hosting a public hearing in July, the Graham City Council met last week and on a third reading adopted a 7% increase to the water and sewer rates beginning in October.

Readings for the ordinance change adopting the new raised rates were approved during city council meetings held Thursday, June 26, Thursday, July 17 and Thursday, Aug. 7. The council had no further discussion during the third reading Aug. 7 and adopted the new rates.

“Approval of this order to formally adopt the rate increases detailed in the ordinance, authorizes the city manager to publish a notice of rate increase and authorizes the finance director to implement these rates in the billing period, which commences Oct. 15, 2025,” City Manager Eric Garretty said.

After being adopted by the city council, the rates will take effect with that October billing period and city customers will see an increase on their water bill received in November.

A public hearing was held Thursday, July 31 with members of the public voicing their concerns.

City resident Robin Sikes asked the city council during the public hearing if the infrastructure would be improved with the rate increases or would remain the same in areas of the city.

“I’m just wondering why the maintenance and the money hasn’t cleared up Graham’s water? We would like as residents to be able to drink the water that comes out of the tap and not have to go give Walmart more money for water that we’re already paying for,” Sikes said.

During the budget workshop last week, Garretty said the city has budgeted $610,00 for replacement of defective lines, valves and meters. The city is also budgeting $80,000 for the replacement of unserviceable manholes and sewer lines.

“We have aging infrastructure which requires repair and replacement,” Garretty said during the hearing. “The big one that we’re working on now is we’re overdue to rehabilitate our water storage tanks. …That estimated cost is $300,000-500,000 per year for the next four years.”

Base meter and water volume charges are increasing by 7% across the board for both residential and commercial customers both inside and outside the city limits. A 7% increase is also proposed for sewer rates for city residents.

“The 2024 water rate study recommends an increase of water rates of 7% per year through the year 2029,” Garretty said during the hearing. “We’re catching up on our revenues that we need to maintain the system.”

City resident Leslie Singleton asked about the justification for pushing the rate increase through 2029. 

Garretty said the city is trying to spread the increase out year over year rather than making a large jump in one year.

“It takes us until 2029 before we’re not having to use savings, that cash reserve, to be able to balance revenues and expenses of the water fund,” Garretty said during the hearing. “That’s based on those projected revenues and projected expenses. We’re trying to do better planning.” 

The water and sewer funds are enterprise funds for the city that are supported solely by the rates that are charged for those services.

The city has annual debt payments of over $1.4 million for the water treatment plant and the alternate water treatment line projects. 

The city council has heard several presentations from the city manager regarding the seriousness of the water and sewer issues. Council Member Jeff Dickinson said during the public hearing that the city needs to make water a top priority.

“We’re not here without a water supply. I don’t know how we rationalize that against the police force, the fire department, everything else that we enjoy in this community, but water is absolutely essential to sustaining any community, and our infrastructure is poor, it’s been neglected,” he said.

Residential sewer rates would increase to $35.05 per month for the first 2,000 gallons of water used, plus $2.89 for each additional 1,000 gallons of water used. The maximum charge will not exceed $38.13 per month. 

Commercial sewer rates would increase to $30.05 per month for the first 2,000 gallons of water used, plus $2.89 for each additional 1,000 gallons of water used. There is no set maximum monthly charge for the commercial class.

For commercial and residential customers without history, they will be charged $34.09 per month until a usage history is established.

The city budget process is still underway with upcoming meetings for the proposed tax rate, proposed budget as well as public hearings for both.

A public hearing on the proposed budget will be held at 8:30 a.m. Thursday, Aug. 14 at 608 Elm St. 

The city has set a town hall and public forum for 6 p.m. Tuesday, Aug. 26 at the council chamber at 609 Elm St. This forum will allow back and forth discussion between the council members and the community regarding any city topic.

The final reading of the proposed budget ordinance will be held during the city council meeting at 8:30 a.m. Thursday, Aug. 28. 

The city is proposing a tax rate of $0.69 per $100 valuation, an increase of $0.035 from the current property tax rate of $0.655 per $100 valuation. 

A public hearing on the proposed property tax rate will be held at 11 a.m. Monday, Sept. 8 at the council chambers at 608 Elm St.

The final reading of the tax rate will be held during the city council meeting at 8:30 a.m. Thursday, Sept. 11.