MEMPHIS, Tenn. — A year after a diesel fuel spill left more than 40,000 people in Germantown without usable water for about a week, city leaders announced water rates, and more, are increasing.
The city said Thursday, July 10, 2024, that residents and business owners would see increases in their water, sewer, and sanitation rates starting with their July bills. Residential customers who use an average of 4,000 gallons per month will see an increase of $8.72. The city said the increase in sanitation rates is the first since fiscal year 2017.
“These adjustments are necessary to address personnel costs, rising maintenance costs, inflation related to water treatment materials, continued infrastructure investment and rising sewage treatment expenses,” said the city in a news release.
The city said the adjusted water and sewer rates are expected to remain in place for three years.
The July 2023 water crisis
This comes one year after Germantown had to shut down the water supply for about a week due to diesel contamination in the entire water supply.
Germantown Mayor Mike Palazzolo told ABC24 in July 2023 a worker was filling a generator tank with diesel fuel so it could keep providing power to the city's water treatment facility, but for some reason, the technician didn't notice the tank had filled up and was spilling dozens of gallons of fuel before cutting off the supply. That worker was put on administrative leave and later fired. Palazzolo said the diesel drained down a slope, contaminating dirt above the source to a major storage tank.
Palazzolo apologized for what happened and promised steps were being taken so it won't happen again. The city also provided a $27.50 credit to affected residential customers at that time.
Rate increases:
Here’s how the city said the rate increases break down for customers:
Residential water rates
- The base rate, for usage up to 999 gallons, will increase from $8.78 to $11.10.
- Consumption between 1,000 and 10,000 gallons - rate will increase from $1.14 to $1.44 per thousand gallons
- Consumption over 10,000 gallons - rate will increase from $2.50 to $3.16 per thousand gallons.
Residential sewer rates
- The base will increase from $5.58 to $7.73.
- Usage between 1,000 to 10,000 gallons - rate will increase from $1.98 to $2.74 per thousand gallons.
- Usage from 11,000 to 21,000 gallons - rate will increase from $2.40 to $3.32 per thousand gallons.
- The maximum charge will increase from $51.78 to $71.65. Residential sewer charges stop at 21,000 gallons per billing period.
Commercial water rates
- The base rate, for usage up to 2,000 gallons, will increase from $14.49 to $18.32.
- Usage between 3,000 to 50,000 gallons - rate will increase from $3.73 pto $4.71 per thousand gallons
- Usage over 50,000 gallons - rate will increase from $5.30 to $6.70 per thousand gallons
Commercial sewer rates
- The minimum rate for usage up to 1,000 gallons will increase from $6.95 to $9.63.
- Usage between 2,000 and 5,000 - rate will increase from $1.99 to $2.76 per thousand gallons
- Usage over 5,000 gallons - rate will increase from $3.44 to $4.76 per thousand gallons
- Commercial sewer charges do not have a maximum.
Sanitation rates
- The backdoor sanitation rate will increase from $36.50 to $40.15 per month.
- The curbside sanitation rate will increase from $29.50 to $32.45 per month.
- The townhouse sanitation rate will increase from $19 to $20.90 per month. The townhouse rate is lower because the City does not collect yard waste at these locations.
The city said anyone with questions about their bills can contact Angela Hollister at AHollister@Germantown-TN.gov or 901-751-7605.