What To Know About Northport's Proposed Rate Changes For Water, Sewer & Garbage

NORTHPORT, AL — The Northport City Council on Thursday heard the first reading of a proposed ordinance that, if passed, would result in noticeable price increases for those using the city's water, sewer and garbage collection services.

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As Patch previously reported, the following increases would be adopted if the City Council approves the ordinance:

• Increases to the fixed monthly administrative fees for both water and sewer by $1.50.
• An additional $1.50 administrative fee would be implemented for water and sewer beginning Jan. 1, 2024.
• Base fees for garbage service will increase by $4.50 a month for residential and $10 a month for commercial.

Northport City Administrator Glenda Webb, during her pre-meeting briefing to the Council on Thursday, explained that while water and sewer usage prices — referred to as "commodity" prices — have been adjusted annually since 2009, the same can not be said for the city's base administrative fees for water and sewer or garbage collection rates.

At present, Webb said the city is currently losing about $1.5 million to $2 million each year just on garbage, trash and recycling services, which spurred the decision to move forward with administrative fee increases to make up the difference.

Webb went on to say that the goal is to continue to offer the same garbage collection service to customers, while still providing recycling at no charge to city residents. This comes amid rising costs for water production and sewage treatment due to inflation, along with increased costs for equipment and treatment chemicals.

"We all know that in order to provide clean, safe drinking water and not be in the situation that Jackson, Mississippi is in, we've got to recapture the cost of production of water and treatment," she said.

It's worth noting that Northport water and sewer customers already see a 3.25% increase in commodity rates on their bill at the beginning of each fiscal year. The proposed ordinance, rather, would see the administrative fees increased.

For example, the average residential city water customer in Northport currently pays about $7.71 for their base rate each month, which does not include commodity costs for usage. While garbage collection is billed as a flat fee in Northport, water and sewer customers are charged primarily on usage.

If passed by the Council at its next meeting, the changes would see the average residential administrative fee on each bill increase to $9.21 in 2023 and $10.71 in 2024. These fees are based on residential water meters and the size of water lines.

Here's a look at the proposed administrative fee schedule relating to city water for the range of different customers in Northport:

"We actually have usage rate adjustments each year on water," Webb said. "However, the water and sewer rate adjustments are the administrative fees that have not been adjusted since 2010. Garbage rates have not been adjusted at all since 2010."

For sewer customers, there is a cap in place setting the maximum price for wastewater services at $39 a month. So, when applying the proposed administrative fee increase for sewer customers — who currently pay $8.48 for the base rate — the administrative fee reflected on each bill would then increase to $9.98 in 2023 and $11.48 in 2024.

If passed by the Council at its next regular meeting later this month, the rate increases to water, sewer and garbage would go into effect beginning Jan. 1, 2023.

The next meeting of the Northport City Council is scheduled for Monday, Sept. 19 at 5:30 p.m.

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