Utilities director outlines rates, $25M fund balance and proposal for 10% water increases

The Richland County utilities director presented an update on the water and sewer system at the council’s May 7 budget work session, saying the utility is financially solvent but faces rising project costs and equipment and workforce pressures.

Director of utilities Johnny Hussein told council members the authority serves multiple districts, buys bulk water for about 14 Murray Lane homes from the City of Columbia because a local well has dried up, and completed a service expansion in 2023 that increased customers in Lower Richland and other areas. “This slide shows our water and sewer service area,” Hussein said while outlining system boundaries and recent investments.

The presentation named several operational challenges: construction costs that have risen roughly 40% on recent bids, fewer bidders on public contracts, higher equipment and chemical costs, parts shortages and shorter lifespans for newer pumps. Hussein also provided a fiscal snapshot: a current fund balance the department reported as $25,000,000, reserves roughly $4,155,000 and outstanding debt of about $46,000,000 with annual payments the department says it can meet.

Hussein reviewed rate history and a 2024 change that added a fire‑hydrant fee and raised the base fee to $23. He said the department is seeking a 10% rate increase for the coming fiscal period, and indicated future 10% adjustments could apply in subsequent years, with the department aiming those increases primarily at customers who use more than 8,000 gallons (businesses and other high‑usage users). “Most of the homes use 6,000,” he said, noting that the proposed change is designed to affect high‑end users more than typical households.

Council members asked for comparisons to neighboring providers and about capacity. In response to a question about comparability with the City of Columbia, Hussein said the county’s water rates are roughly comparable and that the county’s fire‑hydrant fee is lower than some municipalities. Councilmember Newman pressed on sewer capacity in Southeast Columbia; Hussein said existing allocations are at capacity until a new treatment plant is online and that some capacity has been reserved for prior requests rather than being in active use now.

The presentation did not include any final votes; the item was for information as part of the budget work session. Staff said they would provide further details and that more formal decisions would come during later budget deliberations.

The council continues budget work sessions on Tuesday for additional line‑item review and voter action will be taken at later public budget hearings and formal votes.