Republic file photo Columbus City Hall.
The Columbus City Utilities (CCU) board is considering potential increases in water and sewer rates during a special meeting on Monday.
The potential rate increases were recommended by an outside firm and based on a cost-of-service study done for both utilities.
Doug Baldessari with Baker Tilly said the primary driver for the increases are $60 million in planned capital projects identified in the CCU master plan relating to various crucial infrastructure from needed improvements to the city’s lift stations to the city’s water treatment plants.
Sewage rates would be raised over three phases from 2025 to 2027. Rates would see 9% jumps in 2025 and 2026, followed by a 5% increase in 2027.
For example, a residential home using 2,000 gallons of sewer service a month would see an approximate increase in their bill of $1.26 during phase one.
Water rates would be increased in two phases, beginning with a 23% increase during phase one in January 2026, followed by a 20% increase during phase two in January 2027.
Assuming a residential month usage of 4,000 gallons per month, a hypothetical customer would see their monthly bill increase from $16.45 to $20.61 in 2026.
Both rates increase would still need to be approved by the Columbus City Council. A tentative CCU schedule has the new rates proposed to council members on Aug. 20, with the first and second readings of ordinances establishing the change on Sept. 3 and Sept. 17.
Sewer rate increases only require approval by the utility board and the city council, whereas water rate increases need sign off from the Indiana Utility Regulatory Commission (IURC). CCU 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 it would go back to city council once again to approve the final changes based on IURC feedback, CCU officials said.
The previous 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.
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