Even with the increased water and sewer rate, the average residential water bill for a Ridgeland resident will be less than what other residents in the metro area pay.
That’s according to information in the water and sewer rate evaluation the Ridgeland mayor and board of aldermen commissioned last October at a cost of $47,000.
Ridgeland’s average residential bill is set to increase from $36.60 a month to $42.91 starting March 12, making it effective by the April billing, said Ridgeland Mayor Gene McGee.
The average commercial rate will go from $101.80 a month to $111.54.
The evaluation by Waggoner Engineering showed that the $42.91 rate that is based on a typical household monthly use of about 5,000 gallons of water is less than the comparable rate of $48.25 in Madison, $60.51 for customers of Bear Creek Water Association, the $75.45 for customers of Canton Municipal Utilities and the $88 for customers of the Pearl River Valley Water Supply District.
The evaluation notes: “While peer comparisons are useful for general context, utility rates vary based on factors such as water source and treatment requirements, age and condition of infrastructure, capital reinvestment needs, regulatory obligations, and local operating conditions. As a result, direct comparisons between utilities should be viewed as illustrative rather than definitive.”
According to “the evaluation, the city has consistently implemented annual rate adjustments of about 2 percent, utility-specific costs have increased at a significantly faster pace than general inflation. Over the past decade, rising labor, material, energy and contracted service costs have placed increasing pressure on the system’s operating margins, reducing long-term financial flexibility.”
Municipal water and sewer systems are required to operate as enterprise funds separate from the municipality’s general fund.
An enterprise fund for a water utility is a separate accounting and financial reporting mechanism that treats the utility as a self-sustaining business, funded primarily by user fees, not taxes. It segregates the water utility’s revenues and expenses from the rest of the government’s activities, with the goal of covering the costs of operation, maintenance, and capital improvements such as replacing pipes through user charges alone.
State law does not permit municipalities to subsidize water and sewer operations with ad valorem or sales tax revenues.
Waggoner recommended a phased rate adjustment consisting of a one-time increase of 25 percent in fiscal year 2026 with annual increases of 3 percent through fiscal year 2031.
Ridgeland isn’t the only city in the metro area to face increased water rates.
JXN Water has proposed a rate increase that would raise the average residential water bill from approximately $76 to $85 per month, a $9 increase or about a 12 percent increase. Ted Henefin, the interim third-party manager for JXN Water, contends the increase is needed for operating costs and debt service.
U.S. District Court Judge Henry Wingate has not issued a ruling about the rate increase.
The Lake Caroline Owners’ Association (LCOA) is appealing the Dec. 2, 2025, decision by the Mississippi Public Service Commission, which did not set aside the recent water and sewer rate increases by Canton Municipal Utilities (CMU).
“Because of conflicts between applicable rules and statutes, in order to preserve our position, the appeal was filed in both the Mississippi Supreme Court and the Madison County Chancery Court,” said Allison Balducci, president of the Lake Caroline Owners’ Association. “We are presently awaiting the Supreme Court’s ruling on whether it will retain jurisdiction or allow the appeal to proceed in Chancery Court.”
The association is also working with consultants, who are in the process of compiling information supporting the case against CMU for failure to provide adequate water and sewer services, she said.
The Lake Caroline Owners’ Association is the homeowners’ association for Lake Caroline subdivision, which has about 2,200 houses.
CMU serves 1,728 water customers and 1,836 sewer customers in Lake Caroline; those are residents outside the Canton city limits. CMU also serves residents within the Canton city limits.
Bear Creek Water Association serves residents at Lake Caroline that are not provided for by CMU.
The old monthly water rate for CMU customers outside the Canton city limits was $18.65, based on a typical household monthly use of 6 CFF (centum cubic feet, a measure used for water volume), which equals about 4,500 gallons. The new monthly water rate for CMU customers outside the Canton city limits is $29.35 based on that same usage.
The old monthly sewer rate for CMU customers outside the Canton city limits was $14.90. The new rate is $50.97 for CMU customers outside the Canton city limits and includes a CMU utility charge and a Madison County Wastewater Authority wastewater charge.
The old monthly water rate for CMU residents inside the Canton city limits was $16.36, based on a typical household monthly use of 6 CFF (centum cubic feet, a measure used for water volume), which equals about 4,500 gallons. The new monthly rate is $26 based on that same usage.
The old monthly sewer rate for CMU customers inside Canton city limits was $13. The new monthly rate is $47.52 for CMU customers inside the Canton city limits and includes a CMU utility charge and a Madison County Wastewater Authority wastewater charge.
The rate increase is the first one CMU has had since 2012.
Maintenance has been deferred on the water and sewer systems, and CMU doesn’t have the money to make improvements because rates have been so low, said Keith W. Turner, one of two attorneys at Watkins & Eager who represents CMU on the rate increases.
The increase in rates will allow CMU to raise capital so it can make improvements in coming years, he said. “What we’ve had to do is deal with emergency and critical things first,” he said.
An auditor presented the annual audit of CMU at the Sept. 9, 2025 CMU meeting, Turner said, and the auditor stated that CMU has lost $12 million over the last seven years.
Water was a topic for the House Select Committee on Capital and Metro Revitalization in October. 2025 The meeting included information about CMU’s water rate increase, tackled JXN Water issues and delved into water usage at the Amazon data centers being built outside of Canton and in Ridgeland.
