BY DONNA SWICEGOOD
The Statesville City Council is continuing to mull a recommendation by a consultant to significantly increase water and sewer rates over the next decade.
During a meeting held Thursday to continue discussing items on the agenda at the council’s winter retreat, Assistant City Manager Scott Harrell reminded council of the 10-year plan proposed by McGill Associates to fund future infrastructure improvements.
The consultant indicated the need for a 9 percent increase in each of those 10 years with the exception of fiscal year 2027, when a 12 percent hike is proposed. The double-digit increase is needed in 2027 to help pay for the design and future construction needed to maximize the capacity of the Third Creek and Fourth Creek wastewater treatment plants.
During the retreat, council members indicated their preference to aim for a series of 8 percent increases.
The council voted to increase rates by 20 percent in 2021 and by 7 percent in 2024.
The council did not take any action during Thursday’s meeting.
Employee Recruitment & Retention
In an effort to recruit and retain city employees, council also is considering a proposal to provide a monthly stipend to retired city employees to help pay for their health insurance.
Stacey Everette, human resources director, presented some information regarding this proposal during Thursday’s meeting.
Under the proposal, retirees with 30 years or more service would receive a monthly stipend of $800. The stipend would dip to $600 for those with 25 to 29 years and $400 for those with 20 to 24 years of service.
Everette said the stipends would vary based on each individual’s insurance costs.
“What we would do is we would put it into an account. The employee would have to present a premium from their health insurance and we would only reimburse them what their health insurance is,” she said. “If I am eligible for up to $800 and my premium is only $500, the city is only going to give me $500.”
Everette told council members that if all 20 eligible employees retired in the 2025-2026 budget year, the cost of this benefit to city would be $123,600. That cost would jump in 2026-2027 to $154,200 if all 26 eligible employees retired. In 2027-2028, 30 employees would be eligible at a potential cost of $191,000.
Currently, 44 city employees are eligible to retire. The cost of providing the stipend to this group would be $118,383 annually.
Everette said the cost estimates are based on those age 55 and older with more than 20 years of service or those of any age with more than 30 years of service.
City Manager Ron Smith said offering this health insurance stipend is “as much a retention as a recruitment issue for us.”
Smith told the council that the proposal would fit within the 2025-2026 budget if council approves the plan.
OTHER BUSINESS
♦ The city manager also provided information about a couple of items on the May 5 meeting agenda, including a rezoning request for a development of 85 to 95 single-family homes on Peachtree Road and a request from the Downtown Statesville Development Corporation to allow alcohol sales at businesses in the central business district downtown.
Currently, the only businesses in the CB district that can sell alcohol are restaurants, Planning Director Sherry Ashley said.
“They want to allow other retail establishments, events centers and professional services to be able to sell alcohol as an accessory use,” she said.
♦ Smith also updated council on moving the DSDC under the city’s umbrella and the search for a new executive director. Funding for the position will be included in the 2025-2026 budget. A committee consisting of city staff members and three DSDC board members will be involved in the hiring decision.