No Tax Increase & Electric Rate DECREASE Key Takeaways from Budget Workshop Held April 16
On Thursday, April 16 City staff presented the initial budget proposal to City Council for their review and feedback. Top takeaways are no tax increase despite additional state-mandated annual increases to the state retirement system, and a proposed 4% decrease to residential electric rates.
While commercial and wholesale customers (Fort Mill, Tega Cay, York County, City of York, and the Catawba Indian Nation) will see a 15% increase in the volumetric component of the water rates, there is no change in the base fee component. This is about an 8% overall increase for the average residential customer, who will actually see a DECREASE in their overall utility bill due to the proposed 4% electric rate decrease. In fact, starting July 1, the overall utility rates paid by the average residential customer will actually be less than they were over a year ago.
Even with the water rate increase for necessary water plant improvements, the City’s water rates remain among the lowest in the Carolinas. Of 29 similar cities surveyed in the Carolinas, our water rates rank in the lower tier—22nd of 29—with only 7 cities showing lower rates than Rock Hill. Additionally, the Cost of Public Services rate survey does not factor in any proposed rate increases from the other cities, meaning our ranking is likely to improve as other cities raise rates.
The bottom line is that the average residential customer will see an approximate $2.23 decrease in their overall utility bill starting July 1, and will pay residential electric rates less than Duke Energy’s all electric rate.