City’s new water and sewer rates approved in June now in effect

ASHEBORO — The new water and sewer consumption rate and capital improvement charges approved by City Council in June following the FY25-26 budget hearing now are in effect and will be reflected on customers’ November bills, the city announced last week.

The council discussed the changes over several public meetings leading up to adoption of the budget and elected to defer implementation for four months to lessen the impact on utility customers. The adopted budget and rate changes were published to the city website in June and have been reported in local media and via city communications; city staff also have presented the system needs and rate increases at multiple forums across the city this summer.

 The 5% rate increase and meter-based fees will equate to an additional $17.16 per month for the average residential customer and are in line with the American Water Works Association recommendations. The city said in a press release that the new rates and charges are necessary to provide the revenue required to operate the essential service. The city’s Water Resources Division has identified several mission-critical repairs and infrastructure upgrades that will be required to ensure the system’s long-term stability and functionality. Those projects include critical enhancements to the 55-year-old Wastewater Treatment Plant and 86-year-old Water Treatment Plant.

 North Carolina municipal utility providers are required to set rates at levels that ensure the fund is balanced and solvent. The city is obligated to manage the system independently from general fund operations; utility fund revenues must be sufficient to cover all costs, including operation, maintenance, and debt service. Failure to operate in this manner can lead to the State of North Carolina assuming control of the utility system, resulting in the loss of local control and decision making. 

City Manager Donald Duncan says city leaders and staff have “worked collaboratively to fund this life-giving system service is a manner that will keep it affordable even as our fuel, chemical, and operational costs continue to face inflationary pressures.”

 With several hundred miles of water and sewer mains, three primary city reservoirs, and about 30,000 residents to serve, the City of Asheboro will continue to manage the utility much like residents budget for their households. 

“We constantly evaluate the system’s ‘needs and wants’ and make sure we’re smart about how and where we invest, mindful that every decision affects our rate payers,” Duncan said.