City utilities make case for rate increase

Columbus City Utilities is looking to increase its rates, in large part to replace aging water mains that are older or close to 100 years old.

The city water company held a presentation yesterday, outlining the need for the rate increase and the costs to customers. Scott Dompke, head of the utility, explained:

He said that the new rates, if approved, would be phased in and for an average residential customer using 4,000 gallons of water a month, would go from $9.82 a month for water service to $17.97 a month after all the increases are phased in. He said that is still less than nearby cities like Bloomington, Carmel, Indianapolis and Greensburg. The statewide average is $28.89 a month, almost three times the current Columbus rate.

The increased revenue will be used to improve the service over 20 years. A recent survey of the city’s 300 miles of water pipes shows that much of the infrastructure is aging. He said that a third of the city water mains are more than 50 years old, and 10 percent are nearly 100 years old or older.

The proposed rate increase would allow the city to replace just under two miles of water main a year. Even with $50 million dollars in 43 different planned projects, the city will only be addressing a small portion of the city’s total needs.

Dompke said the last time the city had a water rate increase was in 1992.

Under a tentative time line, the first increases would go into effect in August of next year. The utility board would consider the increase at its regular meeting next Thursday and go before City Council at the council’s July 21st meeting for their first consideration. After local approvals, it would go before the Indiana Utility Regulatory Commission for approval.