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31 January 2025

Water Rate Hikes Hit Residents Hard Across US

Local governments struggle to upgrade aging infrastructure amid rising costs, leaving communities feeling the pinch.

Rates for water and sewage are on the rise across numerous municipalities throughout the United States, raising alarms among residents as they grapple with hefty bills amid efforts to maintain aging infrastructure and comply with federal requirements. With adjustments varying from city to city, the increasing cost of water services is likely to hit harder the low-income residents and seniors, who often feel the largest pinch from such increases.

Alarm bells went off recently for Andrew Slavin when he saw his bill from the Oakmont Water Authority. "There is no way my wife and I used 40,000 gallons of water like this bill says we did," Slavin remarked after being charged nearly $1,400 for what he believed was excessive usage. His quarterly bill surged from about $700 to $1,400, putting significant strain on his household expenses. Despite these charges, he noted, "I can still afford it, but it’s not about me; people will have to pick between what bills to pay. Mortgages are less than some of these bills.”

According to the local sewage authority, Alcosan, the jump is partly due to its 7% increase as part of a five-year sewage rate structure plan initiated last year. The cumulative impact has seen rates rise by 21%. Alcosan’s customer service supervisor, Dawn Havrilla, clarified, "Each community has their own surcharge, and that's up to the community," emphasizing the layers of charges layered atop existing water fees.

Meanwhile, officials at DeKalb County, Georgia, are proposing to introduce yet another 10% annual increase over the next decade. The scope of this increase is not just to cover operational costs but to tackle growing infrastructure needs as well. DeKalb County CEO Lorraine Cochran-Johnson noted, "If we do not raise our rates soon, we will miss the deadlines set by the federal government," referencing the need to meet compliance standards related to the county's aging sewer systems.

This is particularly pressing since the county has defaulted on deadlines from 2011, and it appears the governance is scrambling to make up for lost time. Proposed rates could soar to as much as $180 by 2030 if not addressed, as residents currently pay about $70 per month.

At the local level, Linden, Michigan, residents expressed their frustration over recent water rate increases during city council meetings. After recently receiving sizeable bills, resident Ruth Tossey exclaimed, "I’ve never seen anything like it in my life," arguing the city should have communicated impending raises before new homeowners made purchases. The council is considering helping residents by waiving late fees for January's utility bills. Yet, criticism persists as residents like Justin Collings fear the council's measures, such as extending repayment periods, do little to alleviate the burden, especially on those with fixed incomes. "This hits those who need the most help the hardest," Collings lamented, evidencing the strain on the community's septuagenarians who cannot readily return to work.

Further analyses of other municipalities such as Smithfield, Virginia, show the rising tide of water rates is not isolated. According to recommendations from engineering consultants, Smithfield could see its water rate rise to $8.50 per 1,000 gallons starting July 1, with additional increments planned through 2028. Town Manager Michael Stallings stated the goal is to cover deficits with these rate adjustments, saying, "The goal is to cover the deficit with rates." The challenges related to cost-of-living increases are exacerbated as treatment facilities anticipate higher charges from regional sanitation districts.

The disparity and challenge caused by these rate increases paint a concerning picture for municipalities across the nation. With local governments under pressure to comply with federal mandates and maintain infrastructure, the burden is being passed directly to residents, many of whom are already living paycheck to paycheck. The sentiments expressed by community members reflect widespread anxiety about these increases, leaving many to voice their frustrations publicly and seeking immediate reforms.

Emerging conversations on transparency and fiscal accountability can be heard echoing through city councils as they navigate these dilapidated waters. Local authorities are advised to tread carefully and act judiciously, as trust between residents and officials hangs precariously on the brink.