Columbia utility customers may see rates increase next fiscal year

In the past several years, at least one utility rate has increased for Columbia utilities customers.

On Monday night, the Columbia City Council will be introduced to rate increases for all five utilities: water, electricity, sewer, storm water and solid waste.

If all rate increases are approved, the average customer will pay $3.83 more a month for utilities.

Jim Windsor, assistant director of Columbia utilities, said his team is asking for a rate increase for each utility for different reasons.

Windsor said voters approved a gradual rate increase in stormwater utilities in 2015 to help with the cost of maintenance and repairs. People should expect the rates to increase every year until 2020.

Windsor said voters also previously approved the increase of sewer rates when they approved a bond for the utility. Windsor said the city has to start repaying the debt from the bond next fiscal year.

He said the solid waste utility rate needs to increase because the cost of dumping into a new landfill increased.

Windsor said the city wants to increase the water and electricity rates because the reserve funds are lower than the city wants them to be.

Windsor also said weather affects water and electricity rate increases. The city uses a rate structure that encourages conservation. It’s an inverted structure, which means the more water and electricity residents use, the more they pay. If there is a mild winter or summer, customers tend to use fewer utilities, which causes the utilities’ revenues to decrease.

Residents will be able to voice their opinions about the rate increases at the next City Council meeting, which is scheduled for Aug. 21.