Your bill could increase. Charlotte Water approved to borrow $1 billion for upgrades.
The city of Charlotte will borrow $1 billion to help pay for extending and rehabilitating water and sewer lines in addition to other projects, but it comes at a cost to ratepayers.
On Tuesday, the North Carolina Local Government Commission, chaired by State Treasurer Dale Folwell, approved two revenue bonds, each for about $500 million. The bonds will be funded partially by an annual 3.84% increase in water and sewer rates the city expects from 2023 to 2027, according to the Local Government Commission.
The bonds approved are revenue bonds, meaning they’re backed by a specific source. These differ from general obligation bonds that will appear on voters ballots in November.
With the existing city rates, the increase amounts to roughly $3 more a month for the average household using more than 5,000 gallons of water a month. That’s an additional $36 per year. Water bills could get steeper after 2023 with the rate set to continually increase.
The new increases would come after ratepayers are already seeing a rate increase of 3.54% for water in fiscal year 2023, which was approved in June by the Charlotte City Council.
Charlotte Water spokeswoman Jennifer Frost said the bonds will be used to refinance existing debt in addition to extensions, rehabilitation and replacement of existing water and sewer lines; construction of new water and sewer mains and outfalls; the rehabilitation and upgrade of water and wastewater treatment plants; and refunding 2006 and 2011 water and sewer revenue bonds.
Specific projects in the city’s Capital Investment Plan that could be paid for with bond proceeds include:
Building water infrastructure in the Dixie Berry Hill neighborhood, including a new pump at Beaver Dam Creek.
Building a new Stowe Regional Water Resource Recovery Facility which will treat wastewater in northwestern Mecklenburg County, Belmont, Mount Holly and eastern Gaston County.
Improving the McAlpine Creek Wastewater Treatment Plant through rehabilitation.
Expanding and improving the Mallard Creek Wastewater Treatment Plant.
Improving the Franklin Water Treatment Plant through a main building renovation, reliability improvement project and water quality improvement.
Upgrading the McDowell Creek Wastewater Treatment Plant to enhance capacity.
The Local Government Commission’s approval allows the city to obtain funding over the next few years that can be paid off in long-term bonds, which are typically paid off over 10 years or longer.
This story was originally published August 4, 2022 at 6:00 AM.
