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County to explore alternatives after Marion's proposed block water rates could raise NEBO customers' bills
Summary
County staff told commissioners that a proposed 'block' pricing structure by the City of Marion for large water purchasers could add about $70,000 annually to the county's purchase costs (roughly $11–$12 per NEBO customer); the board voted to explore alternative suppliers and discuss the issue with Marion.
County staff updated the McDowell County Board of Commissioners on May 11 about the NEBO water system, a county‑owned distribution network that purchases treated water from the City of Marion for resale to customers in the NEBO service area.
Staff said the interlocal purchase agreement dates to the 2000s and that, once current expansion projects finish, the NEBO system will serve roughly 500 customers. County staff reported discussions with Marion leadership that the city is considering a new block rate structure for large water purchasers — a tiered fee where per‑unit cost rises with volume for major buyers. Staff estimated that the change, as discussed, could increase the county's annual water purchase expense by about $70,000, or roughly $11–$12 per county customer in the NEBO area, and characterized the increase as a 60–65% rise in the county’s purchased‑water expense when combined with other city adjustments.
Commissioners and staff discussed options. Staff said the county’s alternatives are limited within the NEBO boundary unless the county pursued wells (which staff advised against) or negotiated the change with Marion. One commissioner moved and the board agreed to request staff to initiate conversations with nearby Burke County to gather data on potential costs to buy water from them as a contingency and to engage Marion leadership to seek a cooperative resolution.
The board’s motion to explore alternatives and gather comparative data passed by voice vote. No immediate fee change was implemented at the meeting; staff will report back as they gather information and negotiate with city counterparts.
The discussion also touched on the potential distributional impact: storm‑recovery grants and other county financial assistance (including $100,000 from the North Carolina Community Foundation earmarked for lower‑income NEBO customers) could offset some hardship for affected households, but staff warned the county might need to pass higher costs to customers if negotiations do not change Marion’s proposal.
