The proposed fiscal year 2025-26 budget for the Henry County Public Service Authority (PSA) includes a recommended $5 monthly increase in water and wastewater rates to address rising operational costs and ensure continued delivery of safe, reliable service to the community.
This would mark the first adjustment of rates for the PSA in 12 years, a decision driven by escalating costs for treatment, electricity, and essential materials that can no longer be absorbed without compromising service.
“We know rate increases are never easy, and we’re sensitive to the impact on our customers,” said General Manager Dale Wagoner. “But this step is critical to ensuring our water and wastewater systems remain resilient, responsive, and ready to serve future generations. It’s about more than keeping things running—it’s about responding to growing financial pressures with long-term, responsible planning.”
If the rate changes go into effect, the monthly rate for residential customers would be $35 per service up to 4,000 gallons of usage. This figure still falls below state and national averages which hover around $40 per month for similar services.
The overall proposed budget for the next fiscal year is $14,818,239 with approximately $3.2 million of that amount dedicated to capital improvements and debt service. The operational portion of the proposed budget amounts to $11,558,345 which is a 6.7 percent increase from the current fiscal year.
A contributing factor to the increase in the operational budget is the maintenance for newly installed backup generators. The rise in industry-wide construction and repair costs are also expected to increase property insurance by nearly 15%. Overtime costs and on-call compensation were also adjusted to catch up with rising base wages. Funds are also being dedicated to provide a 3 percent cost-of-living adjustment to employees.
Since the last rate adjustment, wastewater treatment fees have increased by 35 percent, electricity has jumped 43 percent, and inflation has risen by more than 37 percent. A work session has been scheduled for 6 p.m., on Monday, April 28, for the PSA Board of Directors to review the budget and make any necessary adjustments before its final passage.
