Lake George water customers will see a 7.5% rate increase in 2026 after the Oak Grove City Council unanimously approved the hike Feb. 9, along with a $200,000 interfund loan to support the utility’s finances.
The loan, approved at 3% interest over 10 years, will come from the city’s Economic Development Authority fund. Council members postponed a proposed sewer rate increase pending additional information.
According to the meeting packet, projections assume annual water rate increases of 7.5% for five years and sewer rate increases of 3% annually over the same period. Supplier costs for both utilities are projected to rise 3% annually. The five-year forecast runs from 2026 through 2030 for the water fund and 2023 through 2028 for the sewer fund.
The financial plan also references a $200,000 interfund loan from the Lake George sewer fund, to be repaid over 15 years. Capital expenses include a $65,000 generator replacement and $6,582 in water meter replacements.
The proposed sewer rate increase would have offset the loan to the water fund if approved.
The city’s water fund reserve policy targets 100% of the following year’s debt service and capital costs and 50% of the following year’s operating expenses. Based on current projections, the fund is expected to maintain those reserve levels through 2030.