The Natchitoches City Council adopted an amended water tower lease agreement, and held an extensive discussion regarding utility revenues and potential water and sewer rate increases during its regularly scheduled meeting on Monday, Oct. 12.
The council also approved resolutions involving improvements to the city’s wastewater treatment plant and construction of the new Fire Station No. 3 on University Parkway.
Council members unanimously approved Ordinance No. 036 of 2026, authorizing the city to execute a fourth amendment to its water tower lease agreement with a wireless communications company. The agreement increases the city’s monthly rental payment to $4,250, generating $51,000 during the first year, with a 3% annual increase thereafter. Before approving the new agreement, the council voted to remove Ordinance No. 022 of 2025 from the table and postpone it indefinitely.
City officials explained that the previous version contained provisions considered less favorable to the city, including language that could have allowed the company to sublease city infrastructure. The revised agreement includes additional protections governing the use of the water tower, equipment installation, structural analysis, and maintenance responsibilities.
Under the new terms, the company must ensure that equipment installed on the tower does not compromise its structural integrity. Any damage resulting from the company’s installations would have to be corrected at its expense. The agreement also places restrictions on replacement equipment, including weight and appearance requirements intended to protect the tower and maintain its appearance.
One of the meeting’s most extensive discussions centered on Ordinance No. 037 of 2026, which would formally authorize the use of revenue generated by the city’s electric utility to support its water and sewer operations and general fund. City officials explained that transferring electric utility revenue to support other municipal operations has been a longstanding practice. However, the practice has not been expressly established in the city’s Code of Ordinances.
The proposed legislation is connected to requirements associated with a $5 million Water Sector Program grant and a water rate study. According to city officials, the revenue generated by the water system must demonstrate sufficient financial sustainability to satisfy the program’s requirements.
Without formally documenting the transfer of electric utility revenue to water operations, officials said the rate study cannot include those funds when calculating the water system’s financial position. As a result, the city could face a required water rate increase or potentially risk the $5 million grant.
Officials said the ordinance could provide another option by allowing existing transfers to be considered in the financial analysis.
City financial officials emphasized that the ordinance would not authorize additional transfers without council approval. Instead, it would formally document a practice already incorporated into the city’s annual budgeting process.
The city’s current base water rate is $12.04 for the first 2,000 gallons.
Officials said the Water Sector Program’s rate study calls for an initial increase of approximately 10%, followed by annual increases of 2.8% over five years. Using the current base rate, a 10% increase would amount to approximately $1.20.
A separate utility rate study currently underway has produced preliminary findings generally consistent with the Water Sector Program’s recommendations. That study indicates the city may need increases of approximately 25% for water and 30% for sewer over time to address operating costs and financial sustainability.
Several council members expressed concerns about the proposed ordinance, the city’s reliance on electric utility revenue, and the potential impact of higher utility rates on residents. Questions were raised about whether the city should continue transferring electric utility revenue to support water and sewer operations rather than pursuing rate adjustments that would allow each utility to become financially self-sustaining. Council members also expressed concern that information about the completed rate study had been provided only shortly before the meeting. Other concerns focused on the potential financial burden on residents, particularly those living on fixed incomes and already facing increased electricity, food, housing, and other expenses.
Discussion also addressed whether large institutional and commercial water customers should bear a greater share of future increases. City officials explained that the rate study considers total water consumption and revenue from residential, commercial, and institutional customers.
Questions were also raised about the city’s financial reserves and the sustainability of continued transfers from electric utility revenues. Financial officials reported that approximately $4.2 million is designated for utility reserves, including funds that cannot be used for other city operations.
The city’s electric utility also faces financial pressures, particularly when considering aging infrastructure and the possibility of major equipment failures. City officials maintained that the proposed ordinance is intended to document existing financial practices rather than establish new spending authority. They also emphasized that adopting the ordinance would not automatically eliminate the possibility of future water and sewer rate increases.
Council members requested copies of the completed rate study and the study currently underway. Officials agreed to provide the information and explore having representatives involved in the analysis address the council, potentially at its next meeting.
Ordinance No. 037 was introduced for consideration only. No final action was taken.
The council unanimously adopted Resolution No. 068 of 2026, authorizing the execution of a certificate of substantial completion for equipment replacement involving Sludge Thickener No. 1 at the City of Natchitoches Wastewater Treatment Plant. Officials reported that the project was completed approximately a month and a half ahead of schedule and required no change orders. The project involved the replacement of equipment essential to the wastewater treatment process. Officials noted that both sludge thickeners at the facility had experienced failures within a relatively short period, requiring replacement work.
Council members unanimously approved Resolution No. 069 of 2026, authorizing Change Order No. 3 for construction of the new Fire Station No. 3 on University Parkway. The change order adds $26,371 to the construction contract, bringing the revised project total to approximately $3.36 million. City officials explained that most of the additional expense involves modifying the station’s exit driveway onto University Parkway.
The original design included a sharper turn that officials determined could create difficulties for large fire apparatus exiting the station. Following consultation with fire department leadership, the city determined that widening the driveway and adjusting its configuration would provide a safer route for emergency vehicles. Officials explained that fire trucks carry substantial amounts of water, making turning movements an important safety consideration.
The revised design is intended to accommodate existing apparatus and potential future equipment. The change order also addresses a structural issue involving the placement of a steel beam, masonry wall, and supporting angle iron. The original configuration could not be constructed as designed because of limited space between structural components. The modification involves extending a brick wall downward to accommodate the necessary support.
Council members also questioned drainage conditions near the station. City officials reported that public works crews had cleared vegetation and regraded portions of a drainage ditch to improve water flow away from the property. The improvements are expected to help address previous drainage concerns, although conditions will be monitored during future rainfall.
The next regularly scheduled Natchitoches City Council meeting is set for Monday, Oct. 26, 2026.