Morganton water bills headed higher, but timing is uncertain

Morganton water and sewer customers can expect higher rates in the coming years as the city prepares for what could be more than $300 million in infrastructure improvements over the next three decades.

City Manager Sally Sandy told The Paper on Wednesday that rate increases are inevitable following the rate analysis, although the City has not determined how much or when rate increases will take effect.

“There is no doubt,” Sandy said when asked if the analysis will kick up utility rates. “Remember that Morganton’s water rates currently are among the lowest in North Carolina. Our sewer rates are down in the bottom third. With new investments and having to put money into the system, somebody has to pay for that, and that’s your ratepayers. In all of this, the secret sauce is how do you balance that? How are you fair in what you’re charging your customers and how are you also responsible in investing in your system?”

The discussion came two days after council members approved another $175,284 for engineering firm Garver LLC to continue developing a long-term water and wastewater infrastructure plan and a separate study of utility rates.

Morganton began mapping out the next 25-30 years of water and wastewater needs with Garver back in August 2024, weeks before Hurricane Helene rampaged across Western North Carolina.

The contract extension will increase the expected total to about $754,000. The city will split the newly added $175,284 payment evenly between the water and wastewater departments.

The rate analysis, Sandy explained, is a separate project to determine how much the City should charge customers for utility use and how rates should be structured over the next decade.

The City of Lenoir, which is relative in population size to Morganton, completed its review and adopted its Asset Management Plan (AMP) the day after Morganton’s discussion of the budget amendment. Lenoir expects about $359 million in future water and wastewater expenses over the next 20-40 years, calculated in 2026 dollars.

Sandy estimated Morganton’s long-term water and wastewater needs will top $300 million. “I have no doubt,” she said, although she clarified that estimate was based on assumptions, and that the actual number estimates won’t be available until the AMP is finished.

Having an AMP in place often increases the availability and ease of acquiring grants and funding for infrastructure projects.

“There’s been quite a bit of changes (since Helene) and it really seemed to be the smarter thing to do to slow down, take all that into account, and to get this right, because we’re gonna live with this for 10 years on the rate study, and 25-30 years on the AMP,” said Sandy.

“There may be a time that something else changes out there and you’ve got to be nimble enough to react, but we wanted to be as informed today, with what we know today and what we think about the future as it can be.”

While the AMP is still in the development process with updates expected in February next year, Sandy said the goal is to have the AMP ready and “to the point where council will be ready to adopt” by the end of the fiscal year in June 2027.

OTHER PROJECTS

Since Helene, projects across the city have hit their share of walls, revaluation, and expansion.

In the same Monday evening meeting, the City Council approved a $15,328 amendment to another Garver project improving the low weir dam facilities at the City’s water treatment plant, pushing the price tag up to $142,302. This project is covered by reimbursements from FEMA.

Minutes later, the City allocated another $325,600 to the Silver Creek Pump Station Project for engineering and observation services. The Silver Creek project is managed by Brushy Mountain Builders, which has extended construction repeatedly from the original 270 days of oversight to 723 days.

“We should pray that this will be the last one,” said Water Resources Director Randy Smith. “... The project has evolved since Helene quite a bit.”

The project is now expected to last until March 25, 2027, according to Smith. He explained that the staff intends to use a cash flow loan from the State to fund the increase, with repayment budgeted through the sewer fund.

“Silver Creek Pump Station just keeps coming back,” Mayor Ronnie Thompson chuckled. “A gift that keeps on giving.”