The city of Madison is taking legal action to appeal the Madison County Wastewater Authority’s decision to increase the rate it charges for wastewater treatment.
A hearing is set for Jan. 24 at 9 a.m. in Madison County Circuit Court before Judge Brad Mills.
The proposed increase would result in a resident paying on average an additional $22.20 a month for wastewater treatment, according to the Notice of Appeal and Complaint for Emergency Preliminary Injunction the city of Madison filed.
Bethany Culley, a Madison resident and Realtor, applauds the city of Madison for looking out for its residents.
“I appreciate the city for protecting the interests of residents,” she said. “A $5 increase is one thing. A $10 increase maybe. A $22 increase is ridiculous.”
On Nov. 19, the wastewater authority voted to increase the operating and administrative rate charged to its members, including the city of Madison. The increase, which would appear on a resident’s water bill, was supposed to go into effect on Jan. 1.
The court issued a stay that will keep the rate what it has been until Jan. 31.
On Nov. 27, 2024, the city filed a petition for an emergency Injunction in Circuit Court at the same time it appealed the decision of the Madison County Wastewater Authority to increase the rate. The city followed its petition with an Emergency Motion for Stay Pending Appeal on Dec. 6, 2024.
The city contends that the wastewater authority has not provided sufficient data to explain or support the proposed increase, said Chelsea H. Brannon, city attorney for the city of Madison.
Also, the wastewater authority has not provided an explanation about why the
rate should be based on the Canton Municipal Utilities’ proposed budget when, at the time of the vote to raise the rate, the wastewater authority was seeking to replace Canton Municipal Utilities as the operator of its facilities, she said.
After the vote on the rate increase, before the city filed its appeal, the wastewater authority and Canton Municipal Utilities settled their pending lawsuits and executed a settlement agreement, removing Canton Municipal Utilities as the operator, she said.
The wastewater authority is composed of these members: the Madison County Board of Supervisors, the city of Madison, the Pearl River Valley Water Supply District, Bear Creek Water Association, the West Madison Utility District and the Lake Lorman Utility District.
The wastewater authority has also provided wastewater utilities to non-member Canton Municipal Utilities, which paid a surcharge of an additional 50 percent for the wastewater authority’s services.
When the wastewater authority was established, it co-owned Beattie’s Bluff Wastewater Treatment Facility with Canton Municipal Utilities. The wastewater authority sends wastewater to its facility, Beattie’s Bluff Wastewater Treatment Facility, for treatment. The wastewater authority charges its members a rate, which its members pass along to their ratepayers.
This isn’t the first time the wastewater authority tried to increase its rate, and the city of Madison objected.
In 2023, the wastewater authority voted to approve an increase in the rate it charged its members based upon the authority’s proposed operating budget, according to the appeal. The city of Madison objected based on the lack of data supporting the increase, and the authority rescinded the vote on April 24, 2023.
On May 22, 2023, the city of Madison adopted a resolution requesting that the wastewater authority board of directors obtain a multi-year operational audit of Canton Municipal Utilities, but the wastewater authority did not obtain such an audit, according to the appeal.
The wastewater authority hired an accounting firm but the firm did not audit all the expenditures of Canton Municipal Utilities, according to the appeal.
