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Mount Pleasant outlines utilities recovery and master plan to replace aging water lines
Summary
Staff said recent rate hikes have stabilized the utilities fund, proposed pausing a planned fifth rate step to evaluate six‑month results, and recommended prioritizing replacement of a 60‑year raw water line and other capital projects using bond proceeds and a proposed master plan.
City staff told the council the utilities fund has improved after two earlier 17% rate increases, but significant capital shortfalls remain — notably a roughly 60‑year‑old raw water line that staff said is at high‑risk of failure.
The City Manager said the utilities fund will reach a healthier reserve level (around the council target of 20–25 percent) under the proposed budget and presented a prioritized capital list that includes raw water main replacement, lift‑station upgrades and master‑plan investments. He recommended suspending the automatically scheduled fifth year of rate increases until staff can assess six months of results from the recent increases.
Why it matters: Utilities are an enterprise fund and their revenues generally cannot be used for general operations. Staff said reliance on borrowed money and leased vehicles had left the fund short of capital replacement dollars; the proposed budget would create a one‑time transfer to reserves and fund a master plan to schedule major projects. Staff pointed to a previous $6 million pump project that had unused capacity and suggested some bond proceeds could be redirected to higher‑priority replacements.
Details and examples: Staff said the raw water main breaks occasionally and that a multi‑day failure recently cost the city about $100,000; they provided a rough unit cost estimate for recurring failures. The Police and Fire chiefs also supported stabilizing utility operations because public safety depends on reliable water supply and hydrant availability.
Next steps: Staff will bring more detailed design and cost estimates for prioritized projects and said the council should review the five‑year rate ordinance again in six months before enacting further increases.
