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UNC rate study: Mayodan fares average on most utility metrics but ranks high on quick ratio; council seeks customer-minimum data
Summary
UNC School of Government staff presented a water and sewer rate study benchmarking Mayodan against about 110 utilities. The town ranks near the middle on most financial indicators but in roughly the 95th percentile on the quick ratio; council members asked staff to confirm how many bi-monthly customers pay only the minimum bill.
Hope Thomson, Senior Project Director with the UNC School of Government Environmental Finance Center, presented the findings of a comprehensive water and sewer rate study at the Jan. 12 Mayodan Town Council meeting.
Thomson said the analysis — directed by the council in Spring 2025 and developed with town staff — reviewed historical rate structures and revenue trends, operating and maintenance expenses, capital improvement needs, debt service and reserve considerations, usage patterns, and customer classifications. The study compared Mayodan’s indicators with about 110 other utilities statewide to provide context for future rate-setting decisions.
"Mayodan is performing near the middle of the dataset for most ratios, with the exception of the quick ratio, where the Town ranks in approximately the 95th percentile," Thomson said. Councilmembers pressed staff on customer impacts and asked for a follow-up confirmation of how many bi-monthly customers are paying only the minimum bill.
The presentation was framed as an informational step to help the council consider policy options for rate structures, reserves, and capital planning; no rate change was adopted at the meeting.
