2026-06-11 June 11, 2026 Committee of the Whole Meeting Minutes - FINAL
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6:00 PM City of Smyrna Mayor and Council Meeting 2800 King Street SE Human Resources Training Room Page 5 of 9 Rate Projections • CCMWA’s current sole source rate is $3.67 per thousand and $4.05 per thousand for legacy non-sole source contracts. • Over the last ten years, CCMWA has had an annual average rate increase of 2.8% while according to the Bureau of Labor & Statistics inflation averaged 3.5%. • Effective January 1, 2026, the Authority implemented a 5% rate increase and gave rate increase guidance of a planned 5% rate increase effective January 1, 2027. _______________________________________________________________________ 2026 AWWA Infrastructure and Affordability Report “The water sector has entered a new cost era.” • Drinking water utilities are no longer facing just an asset-replacement challenge. They are confronting a compounding set of cost drivers: o Regulatory compliance o Climate resilience / Degrading Source Waters o Cybersecurity o Higher than expected construction cost increases • Across the United States over the next 25 years (2026–2050), total drinking water infrastructure needs are projected at $2.1–$2.4 trillion in 2025 dollars, far exceeding earlier estimates tied solely to buried infrastructure. • These pressures signal a structural shift in the cost of providing safe drinking water, not a temporary spike. _______________________________________________________________________ • In 2020, CCMWA’s Capital Improvement Plan budget for the years 2026 through 2035 (ten years) was $748 million. • Currently, CCMWA’s Capital Improvement Plan budget for the years 2026 through 2035 is $1.17 billion. • That’s an increase of 56.7% or $422 million due to inflation in excess of the annual 4% expectation. • Some infrastructure projects that have been bid since 2021 were double their 2020 cost estimates. • From December 2020 to December 2025, operational costs increased 32.90%. That’s an average annual inflation rate of 5.85%. B. COW2026-054 Croy – Quarterly Update Greg Teague and an associate presented the following updates: Active Projects South Cobb Drive Improvements - Preliminary Engineering Progress - Funding Information City of Smyrna G D O T ARC Community Project Funding Estimated Funding Need Estimated Project Total Design $4,212,353 - - - - $4,212,353 Right-of- way $80,000 - $400,000 - - $480,000 Constructi on $3,295,256 - $8,360,000 $10,116,279* $8,931,462* $30,702,996 Total $7,587,609 T B D $8,760,000 $10,116,279* $8,931,462* $35,395,349 • Draft FY27 THUD CPF Project List reflects $1,000,000 appropriated from McBath.