Columbus City Council members on Tuesday night finalized the Columbus City Utilities (CCU) budget for 2026.
CCU has an overall budget of $32.5 million in 2026, up from $27 million in 2025.
A resolution backing the budget was approved 8-0, with Councilor Jerone Wood, D-District 3, absent.
The council originally was going to consider the budget during their Nov. 4 meeting, but it was pushed back by Council President Frank Miller, R-District 4, because CCU provided some additional documentation past the deadline when council members could review it.
The budget increase is chiefly due to increased sewer rates that went in effect last year, and new water rates that are effective for 2026.
Both increases are poised to fund planned capital projects over the next few years to critical Columbus City Utilities (CCU) infrastructure that had been deferred in years past.
Budgets for the sewer and water utilities are $21.7 million and $10.79 million, up from $18.9 million and $8.7 million in 2025.
Operating expenses for the water utility are down 2% from last year due to decreases in contractual services and benefits. Wastewater utility operating expenses are down 1% because of decreases in electricity and benefits, according to CCU officials.
A $29 million state revolving fund (SRF) loan CCU is planning to issue this year is to fund more than 10 projects including in improvements to CCU’s water treatment plants and storage tanks, along with various water main replacements. The $2.4 million in capital projects funded by operations will fuel repairs at the water treatment plants, improvements to the utility’s distribution networks, water lines replacements, among other items.
A $47.6 million SRF loan for wastewater will fund the construction of an interceptor on the west side and a biosolids dryer. $4.4 million in capital projects funded by operations will help pay for wastewater plant improvements, rehabilitation of lift stations, new vehicles and more.
Those interested can learn more about projects CCU is working on by looking at a slide presentation starting on page 71 of the materials packet for the Oct. 21 city council meeting.
The previous water and sewer rate increases were approved in 2021 and lasted over three phases with increases in 2021, 2023 and 2024. At the time, the increases were the first in more than 27 years for water customers and 12 years for sewer customers.
But still, CCU Director Roger Kelso noted that even with an increase in rates, utility bills for their customers still remain lower than many other Indiana cities.
Cost of service rate adjustments ultimately vary based on customer class, but below shows what combined sewer and water utility bills will look like going forward for an average residential user, assuming usage of 4,000 gallons for month.
- Lafayette: $47.79
- Columbus (prior rates): $56.82
- Columbus (2026): $65.03
- South Bend: $66.92
- Bloomington: $68.99
- Columbus (2027): $69.73
- Columbus (2028): $70.45
- Indianapolis: $83.45
- Fort Wayne: $83.51
- Jeffersonville: $100.29
- Greenwood: $105.86
- Evansville: $109.61
