As city residents near the final phase of water and sewer increases that were approved two years ago, Columbus City Utilities (CCU) is considering seeking another rate increase.
Executive director Roger Kelso told Columbus City Council members during a budget presentation that the department will be conducting a rate study in 2024 to see if additional rate increases are needed.
“To be perfectly transparent, it would be difficult for us to engage in the projects that the master plan would dictate without some additional rate increases,” he said.
He added that they are “quite sensitive” to the effect that this might have on the local economy and will do their best to plan future improvements in a cost-effective manner.
CCU Manager of Business and Finance Jamie Brinegar reported that the department’s total proposed operating budget for 2024 is a little over $25.6 million. This includes $8.4 million on the water side and $17.2 million on the sewer side.
Revenue is expected to exceed expenses by just $300 on the water side and $69 on the sewer side.
The department’s revenue assumptions for 2024 include a 7% rate increase for water and a 6% increase for sewer. These mark the third and final phase of rate increases that were approved by the city in 2021.
A key difference between the two rate cases was that the water utility is regulated by the Indiana Utility Regulatory Commission (IURC) and was therefore subject to a lengthy rate consideration and approval process.
The sewer utility, on the other hand, is not regulated by the commission, and its rates simply required approval from the utilities board and city council.
According to a rate comparison from consultant Baker Tilly, CCU’s water and sewer rates for 2022, 2023 and 2024 are generally lower than the state averages from 2021.
“We believe we’re still providing the community a great service at a great cost,” said Brinegar.
The monthly water bill for 4,000 gallons in Columbus was $15.70 in 2022 and $17.71 in 2023, the firm reported. The expected 2024 cost is $19.27, compared to a 2021 state average of $31.95.
On the sewer side, the 2022 cost for a local monthly bill of 4,000 gallons was $34.94 in 2022 and $38.09 in 2023. The expected 2024 cost is $40.37, compared to a 2021 state average of $44.36.
According to utilities engineer Ashley Getz, CCU broke ground on $21 million in water system improvement projects and $14 million in sewer system improvement projects in 2023 thanks to the previously-approved rate increases.
