Oxford aldermen approve process to consider roughly 20% water, sewer hike

The Oxford Board of Aldermen voted at a special meeting to begin the formal ordinance process to consider a roughly 20% increase in city water and sewer rates after a presentation from Oxford Utilities General Manager Rob Neely. Neely told the board the increase responds to mounting capital projects and rising demand, saying, "The capital projects were piling up, and that's created the need to revisit our budget and future budgets to make sure we have adequate water capacity for our ever-growing city."

Oxford Utilities staff provided an example for residential customers using about 3,000 gallons per month: the current monthly bill is about $10.65 and would rise to roughly $12.78 under a 20% increase. Neely also framed the proposal in statewide context, saying, "At the 20% increase, we would still be the fifth lowest in the state." While aldermen approved Neely's request to move forward with the process, the rate increase itself has not yet been adopted.

The board action on Feb. 17, 2026 moves the proposal into the city's required three-reading ordinance process. That process includes a first reading before the board, a second reading and public hearing to allow for public input, and a final reading and vote. Oxford Utilities serves customers inside city limits and customers living outside the city; any increase for customers residing one mile outside Oxford's limits must also receive approval from the Mississippi Public Service Commission.

Officials provided per-1,000-gallon figures for customers who live outside the city limits: the current outside-city rate is $4.87 per 1,000 gallons and the proposed outside-city rate under a 20% increase would be $5.84 per 1,000 gallons. The staff presentation noted the need for a rate adjustment was first raised during budget discussions in August.

The Feb. 17 meeting included other board business recorded in the meeting packet. Alderman Bailey moved and Alderman Addy seconded approval of Change Order #3 for the Jackson Avenue Lift Station Wetwell Rehabilitation Project in the amount of $73,081.00, with Mayor Tannehill declaring the motion carried. Klimetz with Flying Tuk addressed the board requesting the driving age for low-speed vehicles be lowered from 21 to 20; the item passed its first reading and will return for a second reading and public hearing. Alderman Morgan moved, with Alderman Addy seconding, to apply for FY2019 Multi-Modal Funding through MOOT for Oxford-University Transit, a motion Mayor Tannehill also declared carried.

The board has not yet set final ordinance hearing dates for the water and sewer proposal. The increase will not take effect until the city completes the three readings and, for affected outside-city customers, obtains any necessary MPSC approvals.