Water rates to increase in Social Circle starting July 1

Rates to continue increase beginning next year until 2029

The Social Circle City Council set new water, sewer and gas rates Tuesday, and also adopted a five-year utilities rate plan. The new rates are slated to become effective July 1 of next year.

Both Tuesday votes were a prelude to the council’s Tuesday approval of a resolution calling for the issuance of a maximum of $70 million in revenue bonds to address long-standing utilities infrastructure needs

The actual bond issue is likely to total around $65 million, with more than half of that total slated to cover construction of a new wastewater treatment facility. The new treatment facility will replace a plant built in 1962 that is currently capable of treating just 660,000 gallons of water per day. The new plant will treat 1.5 million gallons per day, and will be scalable to eventually handle up to 3 million gallons daily, according to Social Circle City Manager Eric Taylor.

Other projects in line for bond proceeds: The 30-year bonds will be paid back with revenues from the city’s utilities customers, many of whom are located outside the city limits – include a $3 million replacement of the Tower Road water tank, numerous water main replacement projects, and a water meter replacement initiative.

“It’s not an easy decision,” Taylor told council members prior to their unanimous Tuesday votes to set up the infrastructure improvements. But, he added, “it needs to be done.”

Under the new rate structure set to take effect in July, residential water customers inside the city limits will see their monthly base charge, which includes 2,000 gallons of water, rise from the current $27.46 per month to
$34.33 per month. From there, base water rates will increase gradually to arrive at $45.35 for the fiscal year beginning on July 1, 2029. Water customers outside the city limits will see their base rates rise from the current $41.16, covering 2,000 gallons, to $51.45 monthly starting in July of next year. From there, rates are slated to rise gradually to $67.98 for the fiscal year beginning on July 1, 2029.

Base residential sewer charges for customers inside the city limits, covering 2,000 gallons monthly, will rise from the current $24.11 to $32.55 in July, and will increase gradually each year until reaching $45.35 in the 2030 fiscal year. Base residential sewer charges for customers outside the city limits, currently at $36.16, will rise to $48.82 in July, and will increase gradually to $68.12 for the 2030 fiscal year.

Monthly base gas charges, for which there is no differentiation between customers inside or outside the city limits, will rise from the current $9 base monthly charge to $12.60 in July, and gradually to $18.88 for the 2030 fiscal year.

The city’s large industrial and institutional utilities customers will also feel the impact of the new rates.

As just one example, pet food ingredient manufacturer IsoNova Technologies is expected to see its annual water charges rise from the current estimated $269,984 to $364,467 in the 2026 fiscal year. Among institutional customers, the Social Circle Board of Education is projected to see its water expenditures rise from the current estimate of $68,500 to $92,184 for the upcoming fiscal year beginning July 1, with sewer service slated to increase from the current estimated $50,948 to $73,605.

Natural gas charges are projected to increase from the currently estimated $17,144 to $20,185 in the upcoming fiscal year.

With Taylor’s ongoing insistence regarding the dire need for utilities infrastructure improvements as likely part of the reason, Social Circle City Council members were unanimous Tuesday in their support for the bond resolution. But when it came to the new utilities rates set to go into effect in July, and to the five-year rate plan, Councilman Tyson Jackson cast “nay” votes on both initiatives.

As Jackson was expressing his concerns, Taylor noted that the city would be reviewing its rate structure each year, and could potentially make downward adjustments to its current plan. Taylor also pointed out that the potential addition of new utilities customers could also move rates downward while still allowing the city to meet its bond obligations.

The city will be issuing its bonds early next year with a repayment period of 30 years. However, the bonds will be “callable” at the 10-year mark, meaning that they could be paid off earlier than 30 years, if the city found itself in a fiscal position to take that route.