fringe benefit to only one employee

What is the name of your state?What is the name of your state? Oklahoma

My husband works for a small town. Another city employee gets free water, garbage & sewer service. This benefit is not offered to my husband or other city employees. Is this legal?

No one here could possibly have any idea. For all we know, the other city employee is the Mayor and free water, garbage, and service services comes with the job. The Mayor of NYC gets to live in a mansion provided by the city if he wishes to but no other "city employees" get to do so.

If your husband thinks some violation of the law is occurring, then I suggest he report that to the appropriate individual(s).