Davie County updates Coolamie water plant schedule, flags short-term rate pressure

Davie County staff reported on March 17 that construction of the new Coolamie water treatment plant is nearing completion but testing and electrical work have pushed back revenue timing, creating a short-term pressure on the county's water-rate model. Brian Barnett introduced the item and invited Johnny Lambert to brief the board.

Lambert told commissioners the site is roughly 89.3% complete and that key structural work — the clear well, equalization basin and high-service pump building — is finished. Control systems and a new on-site lab are installed and staff have moved from temporary to permanent power in most areas. He said final elevator work, SCADA/electrical commissioning and filter installations remain the principal outstanding items before contractor commissioning begins in May 2026 and the county assumes full operational control in June 2026.

Why it matters: the plant's commissioning was timed to generate bulk-water revenue under a take-or-pay agreement with a neighboring system (approximately 1 million gallons per day). Lambert said that delay shifts the timing of the first debt-service payment and the related revenues. "I do not see a large impact, but I see some impact," he said, adding a one-time timing gap could modestly increase rates in the near term. Staff noted an example rate scenario discussed in budget work that would include a 5% base increase; Lambert indicated a 6% adjustment might be preferable to avoid a much larger spike later and estimated a 5% increase would equal about $1.60 per customer per billing cycle.

County finance staff pulled the debt schedule and worked with the state to move the first payment later in the year to reduce earlier pressure; Robin West confirmed staff successfully secured an adjusted payment date, helping blunt the immediate impact on the operating model.

The update also listed related projects and costs: the original treatment-plant contract was $50,898,000; change orders bring the revised contract total to $51,520,000, and staff said most remaining work will be warranty or punch-list items after commissioning. Lambert reported the Dutchman's Creek lift station — an ARPA-funded $1.2 million project — reached substantial completion and is now in service, and the county will phase replacement of aging AMR meters with Camstrup sonic meters as warranties expire.

Next steps: staff will begin contractor commissioning in May 2026 and transfer long-term operation to county personnel in June 2026. Commissioners asked staff to return with the refined rate model and to explain timing options for any proposed rate change before any vote.

Quoted: "We're pushing to make this, but this is going to change our rate schedule," Lambert said, noting staff is working with consultants on updated rate projections. Finance staff also noted the county secured an adjusted debt-payment timing from the grant/loan administrator to reduce the near-term revenue gap.

The board did not take a rate vote at the March meeting; the county will present updated financial scenarios to the board as part of the upcoming budget work.