City council to consider rate increases for water, sewer utilities

The Columbus City Utilities (CCU) board approved increases in water and sewer rates on Monday.

However, both rates increases still need to be considered by the Columbus City Council.

CCU Director Roger Kelso said the plan is to introduce the new rates to council members on Sept. 3. An ordinance establishing the new rates would need to be passed on two readings to be approved.

The rate increases were recommended by an outside firm, Baker Tilly, and based on a cost-of-service study done for both utilities.

Water rates

Pending council approval, water rates are to be increased over two phases, beginning with a 25% increase in 2026, followed by a 20% increase in 2027 for the majority of customers.

The following is the approved monthly metered flow rate (per 1,000 gallons):

  • First 15,000 gallons: ($3.03) (present rate) to ($3.80) (2026) to ($4.56) (2027)
  • Next 285,000 gallons ($2.58) (present rate) to ($3.34) (2026) to ($4.10) (2027)
  • Over 300,000 gallons ($1.92) present rate) to ($2.33) (2026) to ($2.74) (2027)

Sewer rates

Pending council approval, sewer rates for residential customers are to be increased over three phases beginning with a 5% increase in 2025, a 9% increase in 2026 and another 5% increase in 2027.

The following is the volumetric rate for sewer (per 1,000 gallons), broken down by customer class:

  • Residential and Small Commercial: ($8.33) (present) to ($8.78) (2025) to ($9.57) (2026) to ($10.05) (2027)
  • Large Commercial: ($6.60) (present) to ($8.01) (2025) ($8.73) (2026) to ($9.17) (2027)
  • Industrial: ($5.26) (present) to ($6.33) (2025) to ($6.90) (2026) to ($7.25) (2027)
  • Driftwood Utilities: ($6.16) to ($7.54) (2025) to ($8.22) (2026) to ($8.63) (2027)

Doug Baldessari with Baker Tilly 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.

The board had discussed the possibility of eliminating a summer sewer allowance and Baker Tilly ran through some scenarios should that happen, but board members decided to put a pin in that and perhaps return to it later. The same was the case for a potential new, separate, irrigation rate.

The previous water and sewer rate increases 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.

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.