Cayce officials weigh 7% utility rate proposal to fund sewer repairs and long-term projects

City of Cayce officials on May 6 discussed a proposed 7% increase to utility rates for fiscal year 2026–27 as part of a broader, multi-year plan to replace aging sewer lines and shore up utility finances.

Assistant City Manager and Utilities Director Betsy Catchings told the council the city previously completed a major waterline replacement program that addressed about 75% of the system, primarily in the oldest portions of the city. She identified remaining neighborhoods that still need significant attention—Riverland Park, Churchill Heights, Memorial Drive, Fairlawn and Moss Creek—and said some targeted improvements in Riverland Park (pressure-reducing valves, looping of lines and fire-flow upgrades) have already reduced breaks and improved system performance.

Catchings said the highest current priority is replacing sewer infrastructure in The Avenues, citing the age of the system, repeated failures and regulatory compliance concerns. She described the sewer replacement initiative as planned in phases over multiple years and said staff are developing comprehensive water and sewer master plans to prioritize projects citywide.

Council Member Byron Thomas said residents outside The Avenues have expressed concern that major investments appear concentrated in that neighborhood while other areas continue to experience brown water and aging pipes. Thomas asked for a clear multi-year infrastructure plan that shows when each neighborhood will be scheduled for work so residents can understand the timeline.

Bond Attorney Lawrence Flynn of Pope Flynn told the council that Cayce’s utility financing rests on the council’s rate-setting authority and on maintaining sufficient reserve balances and debt service coverage ratios. Flynn said those metrics affect the city’s bond ratings and borrowing capacity, which in turn influence the cost of financing future large-scale projects.

Staff and advisors also warned that recent inflation has pushed up construction, labor, chemical and equipment costs, so delaying investments can increase long-term expenses. They noted the scheduled expiration of federal American Rescue Plan Act (ARPA) funds may alter contractor pricing dynamics in the near term.

As part of the discussion, staff presented a proposed 7% utility rate increase for FY2026/27. City staff estimated that increase would add about $2.89 per month to a typical in-city residential customer bill. Officials characterized gradual, predictable increases as preferable to larger increases later that could cause ‘‘rate shock.’’

Mayor Elise Partin praised utilities staff for assembling a comprehensive capital and funding strategy and encouraged continued proactive planning for sewer infrastructure where financially feasible. She also asked staff to continue developing long-term vehicle replacement and asset-management plans and to explore energy-savings and performance-contracting opportunities.

The council also discussed workforce retention in utilities: Partin noted roughly 46% of utility staff have been employed less than five years, a factor Catchings said has raised concerns about retention and loss of institutional knowledge. Catchings said neighboring utilities are competing for experienced workers and described options including compensation adjustments and workplace-culture efforts to remain competitive.

No formal council vote was taken on the proposed rate increase at the session. Council Member Byron Thomas moved to adjourn; Council Member Alice Rose seconded and the motion passed by unanimous roll call. The meeting adjourned at 7:06 p.m.