Madison fighting sewer rate increase
The city of Madison is challenging a nearly 300 percent hike in wastewater fees.
Madison filed an emergency injunction in Circuit Court last week to challenge the rate increase by the Madison County Wastewater Authority, which could see the average user paying an additional $22 per month beginning next year.
On Nov. 19, the authority voted to increase wastewater rates to cover Canton Municipal Utilities’ 2025 operating budget, Madison officials say.
CMU operates the authority’s treatment plant on the Big Black River.
Madison had asked for the rate vote to be tabled to gather more information.
The authority has a long and complex history, rife with ongoing lawsuits between current and former member entities.
The current membership consists of the Madison County Board of Supervisors, Madison the City, Pearl River Valley Water Supply District, Bear Creek Water Association, West Madison Utility District, and Lake Lorman Utility District.
CMU, the Town of Flora, and the city of Ridgeland were original MCWA members but have withdrawn in recent years.
MCWA provides wastewater utilities to a large swath of the county west of I-55 and utilizes the Beattie’s Bluff Wastewater Treatment Facility on the Big Black.
MCWA co-owned the treatment facility with CMU, but that ownership is being litigated in an ongoing circuit court case.
CMU has been the facility operator under a contract with MCWA dating back to 2004, which was tied up in court until a settlement agreement was recently reached, removing CMU as the operator and restoring them as a member of the authority.
According to Madison’s injunction, MCWA attempted to increase rates in 2023 and later rescinded the increase after an objection by the city and a request for a multi-year operational audit of CMU.
The court filing states no multi-year filing was completed; only an independent accountant’s report that sampled CMU’s operational expenses.
That report, according to the court filing, says expenses chosen randomly showed over $20,000 worth of improper charges by CMU to MCWA.
“MCWA has not obtained or provided sufficient data explaining why CMU’s proposed charge increased from $0.86 per thousand gallons to $2.39 per thousand gallons over the course of one year,” Madison’s court filing says.
“Without a full operational audit of CMU, and copies of CMU’s current contracts and quotes, MCWA cannot determine the actual cost of operating the wastewater system.
“MCWA has not provided any explanation why the rate should be based on CMU’s proposed budget when MCWA was seeking to replace CMU as the operator of its facilities, and had been in settlement discussions regarding the same,” the filing continues.
Madison is arguing that the city cannot force increased wastewater rates onto ratepayers without knowing the actual cost to operate and maintain the system, which MCWA has been unable to provide.
“The decision is not based upon substantial evidence because it is purportedly based upon CMU’s projected operating expenses, when CMU will not remain the operator and when MCWA has failed to obtain a full operational audit of CMU,” the filing states.
On Nov. 19, the MCWA board voted to increase the total rate to $3.72 per thousand gallons, which includes the cost to offset CMU’s expenses.
Madison’s representative, Pete Vozzo, objected to the increase at the meeting, saying that MCWA could wait until the authority takes over operations to determine the actual operational cost.
MCWA Board President Buddy Voelkel of Bear Creek said the cost is uncertain at the present time and they could always decrease the rate if the rate hike turns out to be unnecessary.
Ridgeland sends its wastewater to Jackson as does Madison east of I-55. Wastewater on the west side of I-55, beginning roughly along the railroad, flows north toward the Big Black, and everything to the east flows south toward the Pearl and Jackson.