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Mount Pleasant council raises water rates, approves tentative 2026 budget
Summary
The Mount Pleasant City Council approved a resolution increasing in-town and out-of-town water base rates and approved a tentative 2026 budget after a presentation on a water-rate model and system finances; council also directed further review of the budget at a future meeting.
Mount Pleasant City Council on May 27 approved a resolution that increases the city's culinary water base rate from $30 to $40 for in-town customers and from $42 to $55 for customers outside city limits and raises per-1,000-gallon overage charges by $1.50. Council members also voted to adopt a tentative budget for fiscal 2026 and agreed to review the budget again at the next council meeting before final adoption.
The action followed a presentation of a year-long usage and revenue model prepared by Janelle Braithwaite of Bridal Water (presented remotely by Ben, a staff member). The model compared current rates to projected revenue needs, including operations and maintenance, upcoming debt service for a planned new water tank, and a funded depreciation line item. Presenters and staff said the combined revenue requirement for the water system is roughly $1.2 million and that the proposed rate changes would reduce, but not entirely eliminate, a projected shortfall; funded depreciation contributions would be reduced rather than eliminated, preserving an annual reserve.
The modeler and staff noted that impact fees have recently been a meaningful revenue source; the consultant and staff estimated impact fees could offset a large portion of the remaining deficit. Council discussion focused on the balance between increasing predictable base charges and variable overage charges, the number of high-use accounts (summer irrigation, institutional users such as schools and hospitals), and the desire to keep Mount Pleasant's rates competitive with other cities while preserving reserves. Council members raised concerns about relying on overage revenue because conservation or weather could reduce those receipts.
Council voted to approve Mount Pleasant City resolution 2025-3, described in the meeting as an amendment to Resolution 2023-18 setting culinary water rates within and outside municipal boundaries. The motion to adopt the resolution was made by Kate (motion) and seconded by Bowles; the roll call for the resolution on the transcript recorded affirmative votes and passage.
Separately, council approved a motion to adopt the tentative city budget for 2026 and agreed to revisit details at the next meeting before final adoption. Staff noted the tentative budget incorporates an assumption of $100,000 in impact fee receipts for the water fund and a $26,000 city water payment line; staff committed to circulating the current rate-analysis spreadsheet to council members for review.
The council's approval of the rates and the tentative budget does not finalize the budget. Council directed staff to post required notices and return with any recommended adjustments at the second June meeting, with a public hearing to follow as required by statute.
Votes at a glance - Mount Pleasant City resolution 2025-3 (amending Resolution 2023-18, culinary water rates): motion made by Kate, seconded by Bowles; roll call recorded affirmative votes and passage. - Tentative 2026 budget: motion made by a council member and seconded; roll call recorded affirmative votes and passage.
Ending Councilmembers asked staff to circulate the rate-model spreadsheet and to schedule additional budget review before final action. Staff said Bridal Water would normally present in person but provided the model for council use and that staff will post materials for the next meeting.
