Mayor & Board Approve Water & Sewer Rate Adjustments

See Full Release The Ridgeland Mayor and Board of Aldermen approved water and sewer rate adjustments at its meeting Tuesday night, following the presentation of a comprehensive Water and Sewer Rate Evaluation conducted by Waggoner Engineering.

The purpose of the study was to evaluate the long-term financial sustainability of the City’s water and sewer system and determine whether existing rates are sufficient to support ongoing operations, routine maintenance, infrastructure reinvestment, and reliable service. The evaluation reviewed historical financial performance, consumption trends, industry-specific inflation, and projected operating and capital needs.

The study concluded that while the City has consistently implemented annual rate adjustments of approximately 2 percent, utility-specific costs have increased at a significantly faster pace than general inflation.  Over the past decade, rising labor, material, energy, and contracted service costs have placed increasing pressure on the system’s operating margins, reducing long-term financial flexibility. 

 “Water and sewer systems are foundational public services that must be planned and funded with a long-term perspective,” said Mayor Gene McGee. “This study helps ensure that Ridgeland is taking a responsible and sustainable approach, so our infrastructure continues to serve residents reliably, not just today, but for decades to come.”

Based on a financial sufficiency analysis, the engineer presented a recommended rate plan designed to restore revenue adequacy and better align future rate adjustments with industry cost trends. The recommended approach is intended to support stable operations, maintain appropriate reserves, and allow for continued reinvestment in aging infrastructure, while preserving the City’s existing rate structure and equity among customer classes.

“Ridgeland operates its water and sewer system with a very lean team, and it is essential that we maintain the financial capacity to reinvest in the infrastructure our community depends on every day,” said Alan Hart, Public Works Director. “In addition, the recent data center development has helped offset system costs through projected revenues and privately funded infrastructure improvements, which reduced the level of increase that would have otherwise been necessary.”

The study also indicates that, even with the recommended adjustments, Ridgeland’s water and sewer rates continue to remain among the lowest in the region compared to similar cities. For a typical residential customer using approximately 5,000 gallons of water per month, the recommended rate adjustment would result in an average monthly increase of approximately $6.31.

Overall, the recommended rate adjustments provide a measured and necessary approach to maintaining financial stability, supporting continued investment in critical infrastructure, and ensuring the long-term sustainability of Ridgeland’s water and sewer services.

City officials note that periodic rate studies are considered a best practice in utility management and are essential to avoiding deferred maintenance, service disruptions, and larger future rate increases. The approved rate increases support stable operations, appropriate reserves, and the long-term sustainability of Ridgeland’s water and sewer system. 

The final Water and Sewer Rate Evaluation is available for public review.