DeKalb judge defends Atlanta’s water rate surcharge to Sandy Springs
DeKalb County Superior Court Judge Nora Polk ruled that the City of Atlanta is justified in charging residents outside of its jurisdiction a 21 percent surcharge for water, reversing a special master's ruling that found no justification for the surcharge. The post DeKalb judge defends Atlanta’s water rate surcharge to Sandy Springs appeared first on Rough Draft Atlanta.
Key points:
- DeKalb County Superior Court Judge Nora Polk ruled that Atlanta can charge a 21 percent surcharge for water to Sandy Springs residents.
- Sandy Springs officials express shock over the decision and believe it was based on an incorrect interpretation of the law.
- The case stems from a long-standing dispute over water rates and system maintenance, lacking a service agreement for 20 years..
- Failure to reach an intergovernmental agreement could result in both cities losing state and federal grants.
DeKalb County Superior Court Judge Nora Polk ruled that the City of Atlanta is justified in charging residents outside of its jurisdiction a 21 percent surcharge for water.
The Dec. 19 court order is a setback for Sandy Springs residents, who have battled the City of Atlanta over water rates and system maintenance for more than three decades.
Sandy Springs Mayor Rusty said city leaders “were shocked by the judge’s decision” when asked about the setback in litigation.
“[The judge] had previously signed the special master’s order on removing the surcharge before Atlanta asked for a further hearing,” Paul said. “We believe the special master’s ruling was correct, and the DeKalb judge’s reversal of something she had already signed is in error. We are appealing that action and believe the [state] Court of Appeals will concur that the special master’s findings were correct and reverse this latest action.”
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Later, Paul said city officials believe the judge relied on an erroneous interpretation of the law in rendering the decision.
“Sandy Springs residents do not have the ability to influence the decisions of the Atlanta City Council in setting water rates, as we are not residents of Atlanta and cannot vote in Atlanta elections,” Paul said in a city-provided statement. “Further, the City of Sandy Springs remains very concerned about the reliability of the water system in our rights-of-way, which we have no authority to manage or oversee.”
Where litigation stands
The Atlanta Watershed Management Department sells water to Sandy Springs and owns the system, charging residents outside of its jurisdiction a 21 percent surcharge.
The cities have been unable to come to a service agreement since Sandy Springs incorporated 20 years ago.
A court-appointed special master ruled in favor of Sandy Springs last April, finding no justification for the 21 percent water rate surcharge. Atlanta then objected to the special master’s report and recommendation, sending it to Fulton County Superior Court.
Polk, serving in the DeKalb Judicial Circuit, handled the case to avoid a conflict of interest or an appearance of bias.
The court order reverses the special master’s report and recommendation, finding Atlanta’s independent consulting firm, Black & Veatch, and its expert’s explanation of the water-rate differential to be rational.
Judge defends surcharge
Atlanta’s rate studies in 2019 and 2024 found justifications for charging up to a 90 percent surcharge to outside-city customers, according to testimony.
However, the Atlanta City Council has maintained the 21 percent premium, first set in 1998.
“Part of what drove the special master’s erroneous recommendation was that he did not know where [sic] the source of the original 1.21 rate differential,” the court order says. “In adjudicating the narrow question here, the court is focused on whether the City of Atlanta had some rational basis for selecting the rate differential. It did.”
Sandy Springs officials say Atlanta has operated the water system in Sandy Springs without a formal agreement since the city’s incorporation in 2005.
State law requires an intergovernmental agreement for a local government to deliver services outside of its city limits, which has expired, according to City Attorney Dan Lee.
If the two entities don’t reach an agreement, both cities will lose all state and federal grants administered by the state.
Lee has said Sandy Springs shouldn’t pay a water surcharge because it’s cheaper to deliver water from the Tom Lowe Atlanta-Fulton County Water Treatment Plant in Johns Creek than Atlanta’s Hemphill Water Treatment Plant in west midtown.
Water reliability is a city priority, discussed annually at council retreats.
Failures of the water system are prompting calls for lower rates and for Sandy Springs to buy the portions of the water system that serve it.
“The City of Atlanta followed a reasonable, appropriate, and, in fact, robust process using a highly competent professional firm in setting the water-rate differential,” the court order concludes. “Accordingly, the court grants the City of Atlanta’s objection and, except for the factual findings relied on herein, the special master’s R&R is hereby reversed.”
The post DeKalb judge defends Atlanta’s water rate surcharge to Sandy Springs appeared first on Rough Draft Atlanta.
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