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Council advances water-rate ordinance and hears detailed utilities budget and bond plans
Summary
Council approved water-rate ordinance readings and heard staff present the 2026 utilities budget, including water revenue projections, planned SRF/bond issuances and a proposed $47.6M wastewater loan for interceptor and biosolids upgrades.
Columbus City Council on Oct. 21 moved forward with utility rate changes and heard a detailed presentation on the utilities operating and capital budgets that will return for final budget adoption on Nov. 4.
Regina McIntyre and city utilities staff told the council the 2026 budget document includes a $35 million FAA reimbursement grant recorded as both revenue and expense; staff said excluding that item shows only nominal increases elsewhere driven primarily by a 4% levy cap increase. Staff emphasized that the FAA grant reimburses 100% of related tower expenses.
Finance and utilities staff presented the proposed water and wastewater budgets and related rate changes. Gavin Harvey, associate director for finance, said the city projects about $10.8 million in total water revenues next year after the approved rate adjustments and described a three-year ‘true-up’ process with the Indiana Utility Regulatory Commission (IURC) to align rates. Harvey said, “with the rate increases that we, that you actually just approved tonight, we are projecting to do around $10,800,000 next year in total revenue.”
On wastewater, staff projected 2026 revenues of roughly $21.8 million and explained planned debt service and capital programs. The utilities plan to issue additional bonds: a wastewater bond (issuance discussed for 2026) and a substantial loan request (staff cited approximately $47,600,000) tied to Westside interceptor construction and a biosolids dryer, which staff said could reduce biosolids volume roughly 80% and lower long-term operational costs.
Staff also outlined operating assumptions: a modest net operating increase (water operating expenses forecast down ~2% due to pension and insurance adjustments; wastewater operating expenses projected up ~1%), and debt-service estimates that reflect existing and upcoming bond payments. Staff said interest-rate assumptions have improved and cited a projected borrowing rate near 3.84% for one bond scenario.
What’s next: Staff will return Nov. 4 for the formal vote to adopt the 2026 budget. The council endorsed first- and second-reading actions on rate ordinances where recorded and discussed options for providing combined water/wastewater bill examples for residents to better understand future bills.
