The Columbus City Utilities board met for their regularly scheduled monthly meeting on Thursday as they’re considering potential increases in city water and sewer rates.
Columbus City Utilities (CCU) Director Roger Kelso said the plan is for the CCU board to vote on potential increases sometime in August.
The board’s next regularly scheduled meeting is on Aug. 15, but Kelso said they will hold a to-be-scheduled special work session before that to have more conversations about the potential increases and decide whether any modifications should be made.
Any increases the board would approve would also need approval from the Columbus City Council, where there will be a public hearing following by two readings of an ordinance establishing the potential change in rates.
A tentative schedule shown during a previous special work session on July 10 had the new rates proposed to council members with a public hearing on Aug. 20, with the first and second readings of ordinances establishing the change on Sept. 3 and Sept. 17. Kelso emphasized those dates are subject to change and could be delayed 30 days, adding they’ll have a better idea on the timeline after their next special work session.
The potential rate increases were recommended by an outside firm and based on a cost-of-service study done for both utilities.
The previous water and sewer rate bumps were approved in 2021 and lasted over three phases with increases in 2021, 2023 and this year. At the time, the increases were the first in more than 27 years for water customers and 12 years for sewer customers.
Doug Baldessari with Baker Tilly, the firm which did the study, said the primary driver for the new round of potential increases is $60 million in planned capital projects identified in the utilities master plan relating to various crucial infrastructure from needed improvements to the city’s lift stations to the city’s water treatment plants.
Baker Tilly recommended sewage rates be increased over three phases from 2025 to 2027. Rates would see 9% jumps in 2025 and 2026, followed by a 5% increase in 2027.
Water rates would be increased in two phases, beginning with a 23% increase during phase one in January 2026, followed by a 20% increase in January 2027.
Sewer rate increases only require approval by the utility board and the city council, whereas water rate increases need sign off from the IURC. Utilities officials will prepare and file the proposed changes with the IURC in September and expect to hear back with IURC’s final order in July of 2025. At that time, the rate increases would go back to city council once again to approve the final changes based on IURC feedback, officials said.
