New Water and Sewer Rates will fund $56 million in critical infrastructure improvements over the next six years.
The Marshall City Council approved a new rate structure in September 2025 following a comprehensive review of water and wastewater operations. The City identified more than $56 million in critical infrastructure improvements needed at the Water Treatment Plant and Wastewater Treatment Plant. The upgrades will include new pumps, valves and electrical components that are vital to maintaining dependable service.
City Manager Melissa Vossmer said the equipment assessment revealed that much of the infrastructure is approaching or has exceeded its intended service life. Operating equipment at the Wastewater Treatment Plant is 25 to 50 years old while water distribution mains at the Water Treatment Plant are more than 70 years old. The increasing costs of repairing and replacing this aging equipment are significantly impacting operating expenses. Water and sewer rates are the primary source of funding for these essential services.
The City is communicating directly with residents in a letter mailed to water customers. New water and sewer rate increases went into effect on January 1, 2026, and consumers will see the new rates on the February water utility bill. For example, a household in Marshall with a three-quarter inch pipe that uses 4,000 gallons of water per month will see their rate increase from $26.74 to $34.35. This is about $7.61 more per month. The average household has a three-quarter inch pipe and uses about 4,000 gallons of water per month, according to the Water Billing Office.
A new water education web page has been created here to put the spotlight on Marshall’s water system, treatment processes and year-around operations. Videos are uploaded to this web site, giving the public an up-close look into how Marshall is investing in its local water utility system.