Proposed Water and Sewer Rate Increase:
The City of Florence is proposing an increase to water and sewer rates to address rising costs, aging infrastructure, and long term financial stability of the system. Rates have remained mostly unchanged for several years, with only a small increase in 2023. During that same time, the costs of materials, maintenance, and operations have risen significantly, especially after 2020. We are approaching this proactively to address growing costs, strengthen the system, and avoid the more serious outcomes that could occur if action is delayed.
Without action, the system is projected to face a budget deficit in the near future. The proposed rate increase is a proactive stance and will help stabilize the system, support ongoing operations, and allow the City to address infrastructure needs while rebuilding emergency financial reserves. For most residential customers, the average rates can be expected to increase $20 per month, with larger households or those with higher usage costing proportionately more. Annual escalators, capped at industry-specific CPI levels, will be incorporated to ensure sustainable, long-term funding for ongoing maintenance needs. Rates are based on how much water is used, so small changes at home can reduce costs.
Frequently Asked Questions
Why is a rate increase necessary now?
Water and sewer rates have not kept up with the rising cost of materials, labor, and maintenance. These costs increased significantly after 2020, and without regular adjustments, the system has fallen behind.
What happens if rates are not increased?
If no action is taken, the system is expected to face a budget deficit of about 1.9 million dollars by 2027. Delays in repairs and infrastructure improvements would continue, and the City could face regulatory action. In extreme cases, the system could be taken over by the state, which would remove local control over rates.
How much will my bill increase?
Most residential customers can expect an increase of about $20/month, with larger households or those with higher usage consumption, costing proportionately more. The exact amount depends on how much water is used.
Will rate increases be the same for all customers?
Yes, the proposed adjustment aligns rates across urban and rural customers.
Why were rates not increased earlier?
There were previous discussions about raising rates, but those efforts did not move forward. Without gradual increases over time, a larger adjustment is now needed.
What will the additional revenue be used for?
The additional revenue will support system operations, repair aging infrastructure, reduce water loss, maintain safe drinking water standards, and rebuild financial reserves.
Why is water being sold below cost?
In some cases, it costs more to produce and deliver water than what is currently being charged. This gap contributes to the financial challenges the system is facing.
Will this increase fund new expansion projects?
No. This increase is focused on maintaining current operations and addressing existing infrastructure needs. Expansion projects would require additional funding in the future.
Does this include future federal requirements such as PFAS treatment?
No. Future federal mandates are not included in this rate increase and will be addressed separately when more information is available.
Will rates continue to increase?
The proposal includes a planned annual adjustment of 3 to 5 percent over the next five years to help keep up with inflation and prevent large increases in the future.
How does Florence compare to other cities?
Florence currently has lower rates than many nearby communities. This is one reason the system has fallen behind financially.
Is the system currently failing?
The system is still operating, but officials have stated that it is under strain. The goal is to address the issues now before they become more serious.
Will this improve service?
Over time, yes. The increase will help reduce leaks, improve pressure issues, resume delayed projects, and strengthen the overall system.
How can I reduce my water bill?
There are several simple ways to lower your monthly bill by reducing water use at home. Start by checking for leaks. A dripping faucet or a running toilet can waste a significant amount of water over time. Fixing small issues quickly can make a noticeable difference. Be mindful of daily habits. Shorter showers, turning off the water while brushing your teeth, and only running dishwashers and washing machines with full loads can help reduce usage. Outdoor use is another major factor. Watering lawns less frequently, especially during cooler parts of the day, can reduce waste. Using a hose nozzle that shuts off automatically can also help.
How can I tell if I have a leak?
An easy way to check is to monitor your water meter when no water is being used in your home. If the meter continues to move, there may be a hidden leak. You can also watch for signs like unusually high bills, damp spots in your yard, or the sound of running water when everything is turned off.
Does reducing water use really make a difference?
Yes. Water bills are based on how much you use, so even small reductions can add up over time. Households that actively manage their usage often see noticeable savings.
What are the biggest drivers of high water bills?
The most common causes include leaks, excessive outdoor watering, long showers, and running appliances with small loads.
Are there simple changes that make the biggest impact?
Yes. Fixing leaks, reducing outdoor watering, and adjusting daily habits like shower length typically have the biggest effect.
Will conserving water help the system overall?
Yes. Reducing unnecessary water use helps decrease strain on the system, lowers water loss, and supports long term sustainability for the entire community.
