County narrows water‑supply options; financial model and Local Government Commission review next

Johnston County commissioners on July 21 received an update on the county’s water‑supply options study and were told staff and consultants will complete a coordinated financial model with the Town of Clayton and seek Local Government Commission (LGC) concurrence before advancing the long‑term project.

Project staff said the long‑term solution (a new treatment plant and transmission infrastructure drawing from the Cape Fear basin) remains part of the county’s plan, but interim purchases of treated capacity from nearby utilities would reduce near‑term rate impacts while staff finalizes governance and finance arrangements with Clayton and other partners.

JD Solman, the county’s project lead on the water study, said affordability is the central objective. “Affordability is really what we’re trying to drive at,” Solman said, and he told commissioners the planning team has refined options since the last briefing. Solman said the project cost used in the current model has risen from prior estimates to $770,000,000 and that staff are modeling alternatives that would bridge capacity from 2033 to the long‑term project timeline.

Among the intermediate options discussed were purchases of treated water capacity from Raleigh (the team is modeling purchases on two corridors into Clayton, including a possible Pool Road route that would provide a larger transmission asset), additional purchases from Wilson, and purchases or coordination with Harnett County and Dunn. Solman said recent state legislation affecting inter‑basin transfers (IBTs) has changed some constraints and opened additional options compared with earlier work.

Staff reported a mix of current wholesale purchases across the county: existing capacity purchases include agreements with Raleigh, Wilson and Harnett (staff noted variability in existing allocations and some overlapping service areas). Solman said the county is considering acquiring up to 6 million gallons per day (MGD) of wholesale capacity from Raleigh as an intermediate measure; the team will model how different purchase amounts affect capital costs and customer rates.

Commissioners asked about governance and regionalization. “I just wonder what we ought to be doing stronger to push towards that regionalization,” said Commissioner Nagano, noting the county’s long‑term interest in keeping Cape Fear basin water in the Cape Fear system. Solman and staff said the county needs a focused governance plan to coordinate multiple partners and to explain the financing and risk allocation to LGC reviewers.

Staff said the immediate next steps are to complete a reconciled financial model with Clayton and to present modeled scenarios to commissioners and to the LGC. Solman said Davenport (financial advisor) and other consultants are refining assumptions — discount rates, payback periods and final project cost inputs — and that the work with Clayton’s financial team would continue in follow‑up meetings scheduled the week after the briefing.

No formal board vote was taken. Commissioners and staff emphasized the need to balance affordability, timing and regional partners in the months ahead and asked for clear rate projections and the LGC narrative that will show how different scenarios affect customer bills and needed financing.

Speakers quoted in this article are drawn from the July 21 meeting transcript and are listed in the speaker section below.