COLUMBIA — The city of Columbia Utilities department presented the public with the results of its water cost of service study to the Columbia City Council on Monday.
This study began in January to project revenue needs for the water utility during the next 10 years. Additionally, it evaluated how this could have an impact on the water utility rates for Columbia customers.
The study, conducted by Stantec Consulting, revealed that the city’s water utility is currently operating at a deficit. It recommended a new revenue system that would increase water utility rates for high-end users in Columbia.
However, the plan also includes a moderate decrease for steady users in Columbia. Among residential customers, it’s projected that 65% would see a decrease in their water utility rates, while 35% would see an increase.
City staff believes this new system is the best way to increase revenue while being fair to Columbia residents.
David Switzer, a member of the Columbia Water and Light Advisory Board, described the presentation as the gold standard for water cost of service studies.
“It is fair from a ‘who puts the most cost on the system’ perspective, while simultaneously lowering costs for those who need it most,” Switzer said.
Switzer went on to explain that most high-end users are those who own pools and irrigation systems. These residents are most likely to see significant water rate increases.
Jason West, Columbia Utilities communication supervisor, emphasized that for these users, it’s important to evaluate your water usage and try to conserve.
“If you have a home garden you may be over watering,” West said. “Same with your yard, if you have an irrigation system you may be using more water than you need.”
The last time the city received a water cost of service study was August 2018.
The city previously approved a water rate increase in August 2024 in a tiered system.
Learn more about the study and to view the full presentation at: gocolumbiamo.legistar1.com/gocolumbiamo/meetings/2025/5/8234_A_City_Council_25-05-05_Meeting_Agenda.pdf