Charlotte approves $2.57B water CIP and FY27 rate hikes amid affordability debate

Charlotte approves $2.57B water CIP and FY27 rate hikes amid affordability debateThe city council signed off on a 5.74% bump to combined water and sewer bills to support a capital program heavily reliant on revenue bonds, alongside a $423 million stormwater investment plan.

Charlotte Water's FY 2027-2031 CIP totals $2.57 billion, funded by $1.54 billion in revenue bonds and $1.03 billion in PAYGO funds.

Combined water and sewer bills for a typical residential customer will rise by 5.74% to $81.21 per month.

Stormwater fees will increase by 4.44%, supporting a $423 million five-year capital program.

Council members highlighted affordability concerns, noting the cumulative impact of water, stormwater, and solid waste fee hikes on low-income residents.

The council also approved a 150-day moratorium on new data centers, with water consumption and cooling demands cited as key regulatory concerns.

The Charlotte City Council formally adopted its Fiscal Year 2027 Operating Budget and Capital Investment Plan (CIP) on June 8, 2026, locking in multi-billion-dollar infrastructure investments and corresponding rate hikes for the city's water and stormwater utilities. The centerpiece of the utility approvals is Charlotte Water's $2.57 billion, five-year CIP for FY 2027-2031. The program is slated to be funded by $1.54 billion in water and sewer revenue bonds and $1.03 billion in Pay-As-You-Go (PAYGO) cash funding. To support this capital outlay, maintain current infrastructure, and meet regulatory requirements, the council approved a 5.74% increase in Charlotte Water rates. For a typical residential customer consuming 4,488 gallons (6 Ccf) per month, the combined water and sewer bill will rise by $4.41 to $81.21 per month. The council also approved a $423 million five-year CIP for Storm Water Services, backed by $170 million in revenue bonds and $253 million in PAYGO and program income. Accordingly, the FY 2027 Storm Water Services Fee will increase by 4.44%, adding approximately $0.48 per month for a typical homeowner and raising the commercial rate to $199.38 per month per acre of impervious area. While the budget passed by a wide margin, the utility fee increases drew pushback regarding affordability. Council Member LaWana Mayfield, who ultimately voted against the budget, pointed to the combined impact of the 5.74% water increase, the 4.44% stormwater increase, and a 13.51% jump in solid waste fees. "We have to recognize that we have residents in our community right now that have experienced layoffs," Mayfield said, noting that for vulnerable populations, these incremental monthly increases represent "not only a meal, that's a meal and a bill for some people." In a separate but infrastructure-adjacent move, the council unanimously approved a 150-day moratorium on new telecommunications and data storage facilities. Council members explicitly cited the heavy toll hyperscale data centers place on municipal water supplies and energy grids as a primary driver for the pause. Mayfield indicated that future policy should aim to make the cost of municipal water access for such facilities "cost-prohibitive" to incentivize the use of internal, closed-loop cooling systems.