Utility rate study mandated by state will likely force first sewer increase since 2008, with recommendations expected within weeks

WEST BATON ROUGE PARISH — West Baton Rouge Parish utility customers should brace for significant rate increases in the coming months, as a state-mandated rate study nears completion and is expected to recommend higher charges for both water and sewer services.

The rate study, required as a condition of receiving nearly $12 million in state grant funding for sewer and water infrastructure projects, will likely mandate that the parish implement new rates within 30 days of receiving the final recommendations — expected within the next two weeks.

Sewer Rates Frozen Since 2008

Most dramatically, parish sewer rates have not increased since 2008 — a 17-year freeze that officials acknowledge is unsustainable given the rising costs of equipment, repairs, and operations.

"We have not had a sewer rate increase since 2008. We're operating at 2008 levels," Parish Utilities Director Adrian Genre told the Parish Council during budget hearings October 28. "Can I tell you what a sewer pump cost in 2008? It does not cost what it costs now."

Current residential sewer rates stand at just $10 per month plus $2.25 per thousand gallons of water consumption. For a household using 5,000 gallons of water, that translates to total sewer charges of $21.25.

By comparison, the Town of Addis — which has its own sewer system — charges $43.25 for the same 5,000 gallons of water consumption. That's more than double what West Baton Rouge residents currently pay.

"Our sewer rates are extremely low," Genre emphasized during the presentation.

Water Rates Also Lag Behind Costs

Water rates have fared only slightly better, with the minimum charge increasing by just one dollar since 2020. Meanwhile, operational costs have climbed steadily, particularly for electricity to run pumps and wells.

The disconnect between frozen rates and rising costs has created an unsustainable financial model that the state-mandated rate study is designed to correct.

Why the Rate Study is Required

The rate study is being conducted by Eisner Amper, a firm assigned by the state rather than selected by the parish. It's a mandatory requirement to receive approximately $12 million in grant funding — $10 million for sewer projects and about $1.8 million for water improvements.

The consultants analyze the parish's financials, operating expenses, current rates, and infrastructure needs to determine what rates are necessary to achieve a "sustainability factor" of 1.15 — meaning revenues must exceed expenses by 15% to ensure adequate funding for maintenance, repairs, and contingencies.

"Quite simply, do your expenses cover your disbursements?" Genre explained. "You've got to hit that number and have money left over for contingencies."

The parish has been working with Eisner Amper for about two months, providing detailed financial data, budgets, and operational information. The study is now approximately 80% complete.

"I can tell you with absolute certainty that they're going to recommend increases," Genre said. "I say recommend — they're actually going to pretty much mandate that we institute the rate numbers that they come up with in order for us to maintain this grant funding."

Timing and Implementation

Genre estimated the rate study recommendations could arrive within two weeks, with implementation possibly required within 30 days after that, though he acknowledged he was uncertain about the exact timeline.

"I would suspect probably within the next two weeks they're going to come back with numbers and they're going to look for us to put those increases in place probably within 30 days of that," Genre told the council. "I'm just guessing that number."

The timing — potentially taking effect before the end of 2025 or early 2026 — comes as the parish prepares for major infrastructure improvements that the grant funding will support.

What the Grant Funding Covers

The nearly $12 million in state funding will support critical infrastructure projects:

• $10 million for sewer improvements: Including work on aging package plants and collection system repairs
• $1.8 million for water projects: Supporting well infrastructure and distribution system upgrades

These projects address decades of deferred maintenance and aging infrastructure, with some sewer package plants operating well beyond their expected service life.

The Cost of Aging Infrastructure

The need for rate increases is driven by the harsh realities of maintaining aging water and sewer systems:

Sewer System Challenges:

• 30+ neighborhood package plants, many decades old
• Plants "on life support" requiring frequent pump replacements
• Pumps and equipment costs have skyrocketed since 2008
• The 2025 budget includes $50,000 just for potential pump replacements at 30 sewer plants

Water System Costs:

• Electricity expenses jumped from a budgeted $300,000 to an estimated $373,000 in 2025
• Chemical costs running above budget at $103,000-$154,000
• Seven water towers requiring ongoing maintenance
• Well infrastructure requiring upgrades

"You don't know what's going to happen on any given day with any of these, especially the package plants," Genre noted. "Some of these are on life support."

Political Considerations

The timing of the rate study and impending increases creates political challenges, coming just before the November ballot. When asked if the parish could delay implementation until after the election, officials noted they'd considered it but emphasized the long-overdue nature of the increases.

"2008 is not just... I mean, if you think last time you had increased 2008, that corresponded with sewer that was in Erwinville in 2008. A rate study was done then, and that's why you had the increase," Parish President Jason Manola commented during the discussion.

Council members acknowledged the difficulty of implementing rate increases, particularly for residents on fixed incomes, but recognized the necessity given the 17-year freeze on sewer rates.

"We talked about a hundred percent increase. That's going to go over... whatever the increase is hurts," one council member said. "A lot of people out there living on $1,200 a month and they pay — when they get a $20 a month increase, it's significant."

Future Costs on the Horizon

The rate increases come as the parish faces additional major infrastructure expenses in the years ahead, including a planned consolidated sewer treatment plant to replace 10 aging neighborhood package plants.

The new regional plant is expected to cost approximately $20-23 million, with funding coming from a combination of sources:

• $10 million from state grants
• $8 million from parish bonds
• $5.1 million from parish funds

However, officials noted that replacing aging sewer infrastructure is ultimately more cost-effective than continuing to maintain 30+ decades-old package plants that are operating well beyond their design life.

What Customers Should Expect

While the exact rate increase amounts won't be known until the study is complete, parish officials have indicated:

• Increases will affect both water and sewer rates
• Sewer rates are likely to see the most significant percentage increase given the 17-year freeze
• Rates must be set high enough to meet the state's 1.15 sustainability factor
• The parish has no choice but to implement the recommended rates to keep the $12 million in grant funding

Utilities Director Genre emphasized he will maintain control over how the new rate structure is applied: "I can control it. Once we end up getting into that particular area, we'll just start monitoring."

Important Clarification: Rates vs. Bond Repayment

Finance Director Stevens stressed that the rate increases are separate from the bond repayment for sewer infrastructure improvements.

"Sales tax is being used to pay the bond that we're doing," Stevens clarified. "This is just simply a requirement that the state requires for you to get the $10 million for the project. These are not fees being increased to pay back the bond. They're not fees being increased to pay for the project itself. This is a requirement by the state to receive $10 million."

In other words, while the parish is taking on debt for infrastructure improvements (repaid through sales tax), the state is requiring rate increases to ensure the utility system itself is financially sustainable for ongoing operations and maintenance.

Regional Context

West Baton Rouge's current rates place it among the lowest in the region. The dramatic difference between WBR's $21.25 sewer charge and Addis's $43.25 charge for the same water consumption illustrates how far below market rates the parish has been operating.

Surrounding municipalities have been adjusting rates regularly to keep pace with rising costs, while West Baton Rouge's 17-year sewer rate freeze has created an increasingly untenable financial situation.

Next Steps

Parish officials will present the rate study findings to the council once received, likely within the next few weeks. Public discussion of the new rates is expected before implementation, though the timeline for adoption may be compressed given state requirements.

Residents can expect more detailed information about specific rate increases once the Eisner Amper study is finalized and presented to the Parish Council.

The West Baton Rouge Parish Council meets on the second and fourth Thursday of each month at 5:30 PM at the WBR Governmental Building, 880 N. Alexander Avenue, Port Allen.

This story will be updated as more information becomes available about the rate study recommendations.

KEY TAKEAWAYS

• First sewer rate increase since 2008 coming soon
• Water rates also expected to rise
• State-mandated rate study nearly complete
• Increases required to receive $12 million in infrastructure grants
• Implementation likely within 30-60 days
• WBR currently charges less than half what neighboring Addis charges for sewer