The Winnfield City Council in its February regular session Tuesday introduced an ordinance that will raise sewer rates for its customers, an increase that was estimated to be about $5 monthly for the “average customer” who now be paying about $22 monthly. The additional charge to major users will be higher, members heard.

City engineer Henry Shuler came before the council with his studies and report and opened with a “Don’t Shoot the Messenger” explanation of the situation.  The state has recently changed its regulations in relation to municipal finances in regard to their receiving a state grants for water and sewer improvements.

The state sets financial guidelines and “it’s no longer that you should or could…you must follow their guidelines.  This is a ‘shall,’ not a choice.”  In this case, Shuler said the state requires that the city’s sewer program must show a 15% profit of income over expenses.  The excess allows a municipality to build a reserve for future sewer equipment replacement and repairs, not having to depend on emergency grants as solutions.

Shuler emphasized that “it’s not a question of if but rather when, because equipment will have to be replaced.  When that happens, they want you to have the money in the bank.”  The state position does include a “threat,” the engineer indicated.  Should a municipality “bow up” and refuse to impose the guideline increases on customers, the state could demand that municipality to repay the grants they had received.  In Winnfield’s case, that would be several million dollars.

The good news from Shuler’s report came when he told the council that when the state originally reported its findings, the rate increase they were asking from Winnfield was higher.  But the engineer successfully showed that figures they had used to reach their conclusion were too broad so the revised percentage was the one the council acted on.

Auditor Steven McKay, attending the meeting to report on the city’s financial audit for the year ending June 30, 2024, commented on the sewer rate guidelines imposed on Winnfield.  He noted that rate increase here is one of the “most moderate” that he has seen on numerous municipalities in the region.

Councilman Matt Miller brought up the point that this increase applies only to the sewer rates.  “Could they come back with increases on water rates?” he asked.  Shuler said there is no immediate impact on water rates but suggested that if the city later pursues a major grant for the water system, it’s likely that water rate guidelines would be attached.

Also Tuesday night, on the audit report given by McKay, the council heard that the city has “passed with flying colors.”