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Whiteville staff recommends modest water/sewer rate increase, outlines meter upgrades and equipment purchases
Summary
City of Whiteville staff told council they plan modest utility rate increases tied to inflation, accelerated replacement of radio‑read meters and smart‑meter pilots, and capital purchases including a street sweeper and vehicle replacements as part of an infrastructure push funded in part by state street allocations and prior council actions.
City of Whiteville staff told the City Council that modest adjustments to water and sewer rates tied to inflation and a multi‑year capital plan are needed to maintain system operations and complete meter replacement projects.
Staff said the recommendation is driven by recent inflation figures and system needs: a roughly 2.5% overall rate adjustment was proposed, based on Bureau of Labor Statistics inflation of about 2.9% in 2024 and 2.3% year‑to‑date in 2025. Staff presented line‑by‑line rate changes — for example, an inside rate moving from 10.50 to 10.76 (units not specified in the presentation) — and described the increases as “modest adjustments” intended to keep the utility financially viable.
The presentation described an ongoing meter project that replaces older radio‑read meters and pilots newer “smart” meters. Staff said smart meters can report temperature and pressure readings and enable remote actions that reduce truck rolls, detect pressure differences before breaks occur and cut operational time. The city has begun installing pressure/monitoring devices on dead‑end lines and is prioritizing smart hardware where recurring service calls or meter damage justify the higher unit cost.
Staff also outlined near‑term capital purchases: a street sweeper, replacements for aging trucks and tractors, and continued meter replacements over the next five years. The street sweeper was described as reducing debris entering storm drains and easing stormwater maintenance; staff said the sweeper typically performs several loads per day and helps reduce material reaching local creeks.
On water‑tower leases and cellular compensation, staff said a third‑party manager negotiates agreements and engineers evaluate tanks each time a carrier requests attachments to ensure tanks can handle extra wind and structural load. Staff reported the city currently receives revenue from such leases and that collections vary depending on contracts and engineering approvals.
Finance updates presented by staff noted several revenue and expense items. Staff said the city’s property valuation used for tax projections was $573 million in the materials shown but had fallen by about $30 million in the most recent comparable figure. Staff attributed part of the revenue effect to an accounting application of a 2% early‑payment discount assessed by the county tax office and estimated that roughly a third to a half of taxpayers may have used early payment discounts (staff described that estimate as uncertain). Staff said the general fund and enterprise funds showed modest favorability overall: water operations had roughly $46,000 of positive variance (about 2.7%), and efforts to reconcile meter reads and billing contributed to improved collections.
Recycling and sanitation were also discussed. Staff said the city negotiated more competitive rates with its contractor (GFL) and found recycling previously was costlier in the market; lower contractor rates and local changes mean the city recommends reducing the recycling fee to align with market pricing. Staff credited prior council direction and billing reconciliation work with producing about $50,000 in additional revenue.
On environmental testing, a council member asked about PFAS sampling. Staff said the city collected samples using bottles provided by the state/federal program and submitted them; results were not available at the meeting.
Staff flagged several near‑term budget items council will see in amendments: correcting a transfer showing ARP funds instead of the intended general fund transfer and adjustments tied to paving and stormwater projects. Staff noted the city’s state street allocation rose by about $18,000, the largest increase they had seen and a contributor to anticipated paving work next year.
Next steps described at the meeting included continuing meter installations for businesses and a remaining, more complex apartment‑complex install; finishing deployment of pressure monitors on dead‑end lines; and bringing budget amendments and transfer corrections to council in upcoming meetings.
