By Darren Svan, KTBS Senior Investigative Reporter
BOSSIER CITY, La. -- Bossier City Mayor Tommy Chandler’s proposed 2027 budget includes a sewer rate increase projection of 16% for the service base rate and 29% for usage, a charge assessed to customers for every 1,000 gallons of water used.
The city charges a usage fee based on the volume of water delivered to homes, in addition to a flat service charge.
Under Chandler’s proposal, households consuming, for example, an average of 5,000 gallons of water per month would see a total increase of about $100 annually, based on data from an EisnerAmper sewer rate study.
It’s unclear if the rate adjustment is the beginning of phased increases spread over multiple years, a suggestion in the rate report.
The new revenue, if approved, would shift what had been a substantial revenue shortfall next year to a $1.1 million budget surplus.
The City Council voted Tuesday to officially introduce the city’s operating and capital budget package, one of the initial steps before final adoption.
The City Council did not ask questions about the rate proposal, nor were there public comments.
In the form of an ordinance, the rate increase is expected to be introduced next month to the council members, who then will decide to accept, reject or adjust the suggestion. If they decide to adjust Chandler’s budget, an additional amendment will be required before final adoption.
Shane Cheatham, Bossier’s chief administrative officer, said an increase is under consideration because costs are outpacing revenues and the city has not raised sewer rates since 2013.
“The cost of everything has increased,” Cheatham said.
Last month, the council learned the sewer department faced a $4.7 million shortfall, a budgetary problem established in the rate study, which KTBS was able to obtain through a public records request.
EisnerAmper, a national accounting and tax firm, conducted the study through its affiliate EAG Gulf Coast.
“The proposed sewer budget shows approximately $21.6 million in revenues, compared with approximately $26.3 million in expenditures,” Cheatham said during a budget hearing last month. “That difference illustrates why we recently completed a rate study examining the long-term sustainability of the system.”
The study offered several rate increase options over different periods of time, ranging from one to five years. Each spread the cost over several years, except for option one, which suggested a 62% increase next year.
EisnerAmper’s study found that the city’s existing sewer rates are insufficient to meet its financial sustainability target in 2027. It needs higher sewer revenues to support operating expenses, debt obligations, capital improvements and long-term infrastructure needs, the report said.
