Politics
New Farm Freezes Residential Utility Rates Through June 2027
The July 8 vote keeps water and electricity charges unchanged for New Farm households during the coming fiscal year.
How we reported this
New Farm City Council members passed Ordinance 47-2026 on July 8 by a 6-3 margin, extending the current schedule of residential utility rates through June 2027 and preventing scheduled increases in water and electricity charges.
The measure arrives as the city prepares its 2026-2027 operating budget amid higher wholesale energy purchase costs reported by the municipal utility department. Council records show the freeze applies only to single-family homes and multifamily buildings with fewer than 20 units, leaving commercial accounts subject to existing escalation clauses.
Effects on household expenses
Average New Farm households using 8,000 gallons of water and 650 kilowatt-hours of electricity each month will continue paying $142 combined, according to the rate tables attached to the ordinance. Families in the Oak Terrace and Riverside neighborhoods, where summer air-conditioning use typically peaks, will avoid an additional $22 monthly charge that had been projected for October. The city clerk's office estimates the freeze will preserve $184 per year for a typical two-person household.
Local advocates note that fixed utility costs interact directly with rent levels in buildings constructed before 1995, where leases often pass through any rate hikes. Property managers in the central ward have already notified tenants that no mid-lease adjustments will occur under the new ordinance.
Budget impact and next steps
The fiscal note accompanying the legislation states the city will draw $3.2 million from utility reserves to cover the revenue shortfall. The same document projects that capital projects for water-main replacement scheduled for 2027 remain fully funded. Implementation begins with the August billing cycle, and the utility department will mail revised statements to all 28,400 residential accounts by July 25.
City staff will present a mid-year review of reserve balances at the November 12 council meeting. Any proposal to adjust rates after June 2027 must first go through a 45-day public comment period required by the city charter.