Jackson council to review 25% water, 10% sewer rate hikes starting June 1

Jackson Town Council is scheduled to review proposed amendments to Title 13 at its March 16 workshop, including utility rate and fee changes that would take effect June 1, 2026. Staff recommend a 25% increase to water user charges (base and volume) and a 10% increase to sewer user charges (base, volume and sewer strength) for all customers, citing higher operating costs, inflation in capital expenses, and recent project cost overruns.

In the workshop packet, Public Works notes water-fund spending has risen over the past two years with a 9% increase in operating budgets and a 58% jump in capital expenditures, driven in part by cost overruns on the Gregory Lane water project and the High School Road pumphouse; council previously approved using about $3 million from the water fund to complete those projects. For the sewer fund, staff cite a 7% operating-budget increase and a 36% increase in capital expenditures, with more than $1 million approved from the sewer fund to finish the Gregory Lane sewer project.

The proposal also includes related fee adjustments tied to construction inflation: a 5.2% increase to water and sewer capacity fees and to the 3 Creek Capital Replacement Charge (based on the Engineering News-Record Construction Cost Index), and a 10% increase to septic dump station fees. The workshop item also introduces a new master-meter water rate structure (developed with consultant Raftelis) meant to more equitably recover costs for developments served through a single meter, and a framework for a water-efficiency (irrigation) ordinance that would set phases, schedules and thresholds for restrictions.

Council is expected to give direction on whether to proceed, including whether to phase in any portion of the increases, which staff say would affect reserve targets (six months of operating costs) and the timing of future capital projects. The full staff report and agenda are in the March 16 workshop packet: Regular Town Council Workshop — March 16, 2026.