Martinsville City Council met June 24 in the lecture hall at the New College Institute to discuss aging water infrastructure and finalize financing options for leasing the former BB&T building at 1 Ellsworth St.
Council selected from four options and ultimately approved a lease at $12 per square foot, increasing the city’s loan payment to $10,800.
The council also heard a presentation from Drew Arnold, project engineer with Dewberry; other company officials; and Mandy Muse, the city’s director of water resources. The group presented findings from Dewberry’s Asset Management Plan for Martinsville’s water and sewer systems.
The city’s infrastructure, valued at more than $600 million, includes components as old as 100 years. Much of it—dating back to the 1920s—has exceeded its typical service life of 30 to 110 years, according to discussion at the meeting.
Dewberry Engineers assessed the condition of the city’s systems and developed an Asset Management Plan aimed at optimizing the entire lifecycle of water and sewer infrastructure, equipment, and facilities. The plan outlines how the utility can maintain, upgrade, and replace assets to ensure reliable service, mitigate risks, and meet service-level goals in a cost-effective and sustainable way, officials said.
In recent years, Martinsville has focused on wastewater interceptor repairs, small waterline replacements, and equipment upgrades. However, maintenance is increasingly reactive rather than proactive.
A 2024 engineering study of the city’s wastewater treatment plant prompted the full Asset Management Plan to help guide future improvements and avoid critical failures, according to discussion.
According to the U.S. Department of Agriculture, an affordable water burden is defined as 1.5% of median household income for 5,000 gallons per month. In Martinsville, with a 2023 median household income of $42,434, that equates to $53.04 per month.
Currently, customers pay $33.31 for water and $32.64 for wastewater—totaling $65.95, which exceeds that affordability threshold. A rate study is underway, but results depend on the recommendations and data from the Asset Management Plan, officials said.
Many of the city’s water and sewer assets are nearing the end of their service life. While Martinsville has made progress over the last decade in replacing wastewater pipes, key facilities—such as the water and wastewater treatment plants—still require major upgrades. GIS mapping is being used to prioritize underground pipe repairs.
Although staff are qualified to perform complex work, officials said an annual 5% increase in personnel and equipment will be necessary to keep up with system demands.
Capital spending from fiscal year 2021 to 2025 remains below the rate of depreciation. Revenue increases of 5%–6% for water and 10%–11% for wastewater are likely needed to meet long-term renewal goals. Despite this, current user rates are still about 40% below the federal affordability threshold.
Recommendations from the Dewberry report include staying focused on maintenance, increasing in-house repair work by 5% each year, and prioritizing renewal needs at both treatment plants. Staff will continue to expand GIS mapping and use flow monitoring to guide sewer repairs. A reserve fund was also suggested. Rate adjustments are expected to begin soon to align with the 10-year forecast.
A revenue increase of 5% to 6% is expected.
“No, this plan wasn’t put together in order for us to raise water rates,” said Council Member Julian Mei.
Council Member Aaron Rawls noted that recent financial gains may help offset potential increases in the next few years.
In other matters, council:
*Awarded a contract of approximately $108,000 to Mosley Inc. to assess the condition of City Hall. “The idea is to satisfy some of the potential litigation we are looking at,” said Public Works Director Greg Maggard.
*Approved (in a 3-2 vote, with Mei and Rawls opposing) a round of proposed FY 2025 appropriations. Staff requested the appropriation of carryforward funds from previous fiscal years. These funds were already approved by council but must be reappropriated to maintain the integrity of the city’s general ledger. Procurement and Budget Director Robert Floyd said the move is standard practice and ensures spending matches appropriated funding.
*Accepted the resignation of Damien Wainwright from the Planning Commission.
*Held a public hearing to accept nominations to fill vacancies on the school board. No names were submitted during the hearing, though Council Member Rayshaun Gravely suggested Mike Williams and Sarah Morrison. Interviews will be scheduled when council meets again Thursday, June 26.
*Approved a proposed ordinance to issue one-time monetary bonuses to qualifying employees of certain state-supported local agencies, using state funds. The bonuses will not come from local revenue. The state authorized a one-time bonus of 1.5% for eligible employees, including constitutional officers, General Registrars, and Electoral Board members.
*Provided updates on the Tyler Connect conference, where city employees received training on the MUNIS software system.
*Approved proclamations recognizing Independence Day and the Martinsville Middle School Lady Bulldogs, 2025 soccer champions.
*Announced the city audit has been completed and will be presented on July 22.
*Held a work session before the regular meeting to hear an update from the police department and a presentation of a senior capstone project.
*Met in closed session to discuss employment and legal matters related to the City Manager, City Attorney Designee, and City Attorney; and to review legal counsel concerning pending litigation and the Economic Development Authority memorandum of understanding.
