Columbus City Utilities customers will begin seeing increases in water and sewer rates this August.
On Tuesday night, the Columbus City Council approved the second readings of ordinances increasing the rates of both utilities.
Utilities Interim Director Keith Reeves said at a previous meeting that both rates are scheduled to go into effect on July 1, with new water rates appearing on customers’ bills starting Aug. 1.
Doug Baldessari with Baker Tilly, a firm retained by the city for services related to both rate cases, said then that the new sewer rates are likewise expected to start showing up on utility bills Aug. 1.
Both increases will use a three-phased approach, which is as follows (per the ordinances):
- Phase I — July 1, 2021
- Phase II — Jan. 1, 2023
- Phase III — Jan. 1, 2024
There are quite a few similarities between the two rate increases, including changes to rate structures, similar cost drivers (such as infrastructure improvements and operating expenses) and a difference in increases across customer classes. Reeves said that for both rate cases, industrial users will see a larger rate increase than residential users.
However, a key difference in the two rate cases is that the water utility is regulated by the Indiana Utility Regulatory Commission (IURC) and subject to a lengthy rate consideration and approval process. This process culminated in late March, with the commission approving a settlement agreement between the utility and other parties, which included lower rates than the city’s original request.
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.
When asked by a member of the public about the possibility of using grant funding for water and sewer projects, Reeves said that the city will "take advantage of anything that we can," though right now there’s an "abundance of talk" as opposed to a definite abundance of funding.
"To qualify for these new federal grants that come up, we’re being told the first step is to be in the pipeline for the State Revolving Fund, which we are," he said. "So we’re in the room, we’ve got our hand up. But we haven’t found anything yet."
Doug Baldessari with Baker Tilly, a firm retained by the city for services related to its rate cases, added that, unfortunately, low rates actually count against a utility when it applies for grant money.
Reeves also shared a chart comparing combined water and sewer charges for residential users across each phase with combined charges for other communities. It showed that even after the third phase of both rate increases, Columbus City Utilities will still be competitive compared to these other utilities.
In addition to giving initial approval for rates, city council also passed the second reading of an ordinance amending municipal code regarding the water utility. Reeves said that some of the changes come from the new rates or correction of existing errors.
He added that the utility is also seeking changes to its non-recurring charges, which are included in the modifications. These will need IURC and then city council approval, but the process will be much shorter than that of the rate case.
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Based on the rate structure posted on the city’s website, monthly residential water charges for 4,000 gallons currently total $9.82, and the cost will increase to the following amounts under the proposed rates:
- Phase I: $13.79
- Phase II: $15.58
- Phase III: $16.72
A 4,000 gallon monthly sewer bill for a residential customer is currently $31.10 in Columbus.
The cost will increase to the following amounts under the new rates:
- Phase I: $34.94
- Phase II: $38.09
- Phase III: $40.37
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To learn more about the new water and sewer rates, as well as planned utilities projects, go to columbusutilities.org/new-billing-rates/.
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