Statesville City Council Reviews Utility Projects, Rate Plans

The Statesville City Council reviewed its strategic plan and discussed potential revenue and fee changes for electric, water, and sewer services during a winter budget retreat held Thursday.

Utilities Director Cody Leis told council members that several ongoing initiatives would require a significant capital investment. Among the projects discussed was a new electrical substation to replace one in the southwestern section of the city that dates back to the 1950s. The existing substation now serves a growing area that includes several new and planned subdivisions. The replacement project is estimated to cost between $7 million and $8 million.

For water and sewer services, a study previously recommended a 22 percent rate increase for this year. However, at its 2025 winter retreat, council instead settled on a 9 percent increase for 2026, followed by projected increases of 12 percent in 2027 and 9 percent in subsequent years.

Proposed capital improvement requests presented at the retreat included $3.7 million for equipment, $3.6 million for vehicles, and between $17 million and $24 million for capital projects planned for 2026.

Ron Smith emphasized that the figures discussed represented potential “wants,” noting they would likely be reduced to essential needs during the formal budget process.

No action was taken by council during the retreat.