Higher sewer bills coming to Ashland as city moves forward with expansion plan

By Audrey Ellis and Dylan Barbee

Ashland residents can expect to see an increase in sewer rates starting Oct. 1.

The Ashland Board of Aldermen on Sept. 2 approved an ordinance authorizing the issuance of up to $28 million in special obligation bonds to pay for improvements to the city’s wastewater treatment plant. The board also approved new water rates that will increase revenue by 23% per year through 2027.

The average water bill will increase from the current $52.65 a month to $64.76 in fiscal year 2026, $79.65 in 2027 and $97.97 in 2028, according to a sewer rate study prepared for the city.

The vote was 4-3, with Mayor Dorise Slinker breaking the tie. The action came after Ashland residents in 2024 voted to reject a $40 million bond issue for improvements in the city’s wastewater system.

City officials have said that, despite the voters’ rejection of sewer expansion plans, the city had to proceed with the project because the current sewer system is nearly at capacity.

One resident, Casey Schutterle, spoke against the project. He acknowledged that Ashland is a growing community, but argued that dramatically raising residents’ water-sewer bills would drive people away from the city.

“I wish there were more people here to say something,” Schutterle told the board. “I feel really sorry for the single mom with four kids who has to use 4,000 or 5,000 gallons of water, and she’s going to be charged more than a mom and dad with a baby that only uses 3,500 gallons of water. How is that right?”

The city’s wastewater facility currently processes 575,000 gallons of wastewater a day with 600,000 gallons during days with heavy rainfall. The expansion will increase the facility’s capacity to 1.6 million gallons of wastewater a day.

The expanded wastewater facility is expected to open in May.

Possible savings for some customers

Ashland water-sewer customers’ bills are made up of a combination of fixed and variable costs, with the variable costs based upon how much water is used.

Matthew Stoffel, director of PFM Financial Advisors, a firm that prepared a study for the city, told the board at the meeting that some adjustments in rates have been made since the firm made its initial presentation to the city in March.

While the plan still calls for annual 23% increases for the next few years, the emphasis will be on raising the variable rates rather than the fixed rates, he said.

“The biggest change is, we tried try to lock in fixed rate increases closer to 5% a year, so the fixed base fee doesn’t change more than a nominal, inflation-type figure,” he said. “The rest of the increases come through the variable rate. This allows for users of the system, if they want to reduce their usage of the system, they can reduce their sewage bill by doing that.”

The city also will use $2.5 million of the bond proceeds as a reserve fund, which could be used if the city at some point were unable to make a debt payment.

Split decision

Second Ward Alderman Samuel Turner was among those who opposed the measure.

“It’s everyday dollars,” he said. “It’s families that are pinching pennies right now.”

Third Ward Alderman Rick Lewis voted in favor of the project, stressing that the Board of Aldermen felt their hands were tied.

“It’s something that needs to happen,” he said. “People are going to complain about some modest increases, but what kind of complaining would happen if, when you flush the toilet, it doesn’t go down?”