Water authority approves 2026 budget, stalls on rate hike debate

Macon Water Authority board members approved the 2026 budget at its monthly meeting Oct. 2, but board members were unable to reach an agreement on the proposed rate increases that will impact projected revenue. 

The operating budget includes $93 million in revenue and $85 million in expenses. The stormwater budget projects $11.6 million in revenue and $7.4 million in expenses.

The board approved the budget 5-2 with members Elaine Lucas and Desmond Brown abstaining.

“I cannot support a budget that did not go back and have a thorough forensic look at the previous budget,” Lucas said. “Because of the previous year’s budget and because of the misspending that took place in that budget … There’s no way that I could support this. I’ve been a member of the appropriations committee with the city and the county for 30 years, and this just doesn’t work for me.”

Lucas also noted the board had not completed its annual performance review for CEO Ron Shipman, who cut up his purchasing card in a meeting earlier this year amid accusations of corruption.

The chief executive said the budget is “a best guess” and the authority is set to come in under budget by about 13% for fiscal year 2025.

During the meeting, which lasted more than four hours, a couple of board members made motions to approve rate increases, but the motions failed or were rescinded. Chairman Gary Bechtel said little.

Board member Bill Howell proposed the board approve a 5% rate increase with a tiered system that would shift some of the financial burden from customers who use small amounts of water to industrial customers who will pay more for using more water. 

The 5% increase with a tiered structure, “in the long run, is more appropriate for the water authority,” Howell said.

The motion failed.

Brown motioned to table the issue, but board member Dwight Jones objected.

“It is doing the hard things and making the hard choices that we have to do to ensure our future as an organization,” Jones said.

The authority has some $250 million in projects — including deferred maintenance — it aims to complete by 2030. The board’s decision on how much it will increase rates will determine how much of the work will be financed and how much will be paid for in cash. 

Senator proposes penny sales tax

As the board waffled on making a decision on raising rates, State Sen. David Lucas, D-Macon, presented another option for how the authority might pay for the work. He is the husband of Elaine Lucas.

His idea is to introduce legislation to create a Municipal Option Sales Tax to help pay for the work. The penny sales tax applies to all retail sales of tangible personal property delivered to customers within city limits and retail sales of taxable services performed.

“We passed the MOST when all the pipes and everything was busted in Atlanta,” the senator said. “It excludes the cap on the sales tax in the community. What I am suggesting is that I’m going to put a bill in to make Macon part of the MOST. It lasts for four years. It can be renewed six times after that, which means 28 years. Right now the sales tax is bringing in approximately $42 million. I don’t know how much it will bring in the near future, but if you take $42 million times four years, that’s $168 million. So, I think that will help resolve some of the problems that y’all have in trying to replace a lot of this old infrastructure.

“It will give you the money to do the work and also be able to kind of keep the rates,” he said. “In the end, it’s all about money. … Before you decide to raise the water rates, try to give us an opportunity to do what we need to do legislative-wise for the Macon Water Authority.”

Jones thanked the senator and said the MOST is “a unique way to hopefully solve our problem.”