Natchez residents may see their water bills increase in the next few months.

But it’s for good reasons, Natchez Waterworks Superintendent David Gardner said.

Natchez Waterworks hasn’t raised its water rates in 12 years, Gardner said. And because the cost of operations has gone up and the number of customers has gone down, something has to give.

“It’s been 12 years,” Gardner said. “It’s time.”

Come March, the average household will see $6 added to their water bill each month.

It’s an average of 19 percent increase for sewer and water service — small change compared to 1994’s rate hike of 39 percent.

The rate change is not official yet. The water board will likely bring the topic up before the board of aldermen at the next meeting, Wednesday.

But water rates have stayed low for so long, it’s difficult to operate, Gardner said.

The water works has operated on a $1 million loss each year for years, he said. They’ve tried cutting operating costs, but they’re still losing money. Cutting any more would mean losing services.

The last time they raised rates, the Natchez economy was progressing nicely. The city still had industries like Ethyl, which were not only water works customers themselves but drew residents who, in turn, were also customers.

At the time, there was no reason for waterworks officials to think there would be a change. So, they planned for the city to grow even more.

But industries left and residents left, leaving the waterworks and others to struggle.

The increase is necessary to keep up with rising material costs, too, Gardner said. The cost of utilities like gas and electricity have risen over the past few years.

“(The cost of) steel pipe has gone up 400 percent,” Gardner said.

Raising water rates is really the only choice, he said. Water works operates as a business and doesn’t get tax money.

“We are a business that just happens to be owned by the city — a business that runs on the bottom line,” Gardner said. “And the bottom line is we’re losing money.”

They can apply for grants, but that takes match money. But funds that could be spent as match money are now being used to supplement the water works’ cost of operation.

“If we can get grants, we can take $4 million and do $11 million worth of projects,” Gardner said. “Right now, we’re not able to. We’re picking up the slack for lost revenue. It’s like a dead expense.”

And it’s not just a matter of wanting to be good businessmen. Although the water works is a not-for-profit organization, the health department requires the waterworks operate at a 10 percent profit. It doesn’t take much math to see that if they are losing $1 million a year, that’s not happening.

Even with running at a deficit, the waterworks received a perfect rating from the health department this year, something Gardner said has never happened before.

But to keep that score up in the future and to keep Natchez water top-quality, some changes have to be made. The wastewater treatment plant needs upgrading, old and stuck valves need replacing, sewer pumps called lift stations need renovating and water lines need replacing, among other things.

One catch-22 is that the water works needs to spend money to save money. Right now, money is being spent on repairs, when, if replacements and upgrades were made, it could be used for grants and other projects.

“For instance, I’m at a point where we have to do work at the wastewater treatment plant,” Gardner said. “It was built in the 1970s and is in dire need of repair.”

They also need to spend money to make money. The waterworks plans to expand water and sewer service to outlying areas like U.S. 61 South — areas that will likely be developed in the near future. Future businesses would be good customers, Gardner said, and they would mean more income for the water works.

Even with rate increase, city residents still pay less for water than Adams County residents, Gardner said. Some people see the county bills and think they pay less, but county bills don’t include sewer and garbage service.

Further increases, which would be from 2 to 5 percent, would be assessed each year, depending on the need. Future rate hikes might not be necessary every year, Gardner said.

“Even with the increase we’re asking for, we’re in the middle of the price range around the state,” he said.

And even though the average customer’s bill will only increase by the price of a lunch, those added together will help the water works out tremendously, he said.

“It’s not a popular thing, but it’s something that we have to do,” Gardner said. “It’s good fiscal management.”

Natchez resident Gendy Walker said she wouldn’t mind paying a little more on her $50 water bill if it meant improvements.

“If it’s to make the water better, it’s fine,” Walker said. “I wouldn’t have a bad opinion about that at all.”

Natchez resident Patrick Stroud said he pays about $25 a month for his city water.

“Water’s already high enough as it is here,” Stroud said. “I’m not really at all for it.”

But Stroud, who used to be a plumber, said he can see the need to raise rates to replace old valves and maintain the water treatment plants.

“Six bucks is alright,” he said. “It’s fair.”

Rick Walters, who lives in the county, said he gets county water, on a separate system. He said he could see why some people would be opposed to higher city water rates.

“But I can understand raising rates,” Walters said. “Everything else is going up.”