By Everette Pitts
Pittsboro, NC — Less than a year after Chatham County water customers were folded into a regional utility system anchored in Sanford, many of those same households are facing another increase in the price of one of the most basic services local government provides: water.
City of Sanford staff has proposed a 7 percent rate increase for water and wastewater services provided by TriRiver Water, the regional utility now serving Sanford, Pittsboro, Chatham County and Siler City. For former Chatham County utility customers, the increase would mean a residential water bill based on average use rising from $52.11 to $55.80, a $3.69 monthly increase in the example published by TriRiver Water. For Pittsboro customers, where water and sewer bills are both part of the calculation, the dollar impact would be larger.
The proposal is more than a routine annual utility adjustment. It is an early test of the regional water model that Chatham County, Pittsboro, Siler City and Sanford embraced to confront growth, aging infrastructure, rising operating costs and the immense expense of connecting separate water systems into one larger network.
It also shifts part of the political conversation away from Chatham County government and toward Sanford City Council, where TriRiver Water’s rates are now considered through the city’s annual budget process. Two public meetings are scheduled in Sanford: a June 9 City Council work session and a June 16 City Council meeting, where interested speakers must sign up before the meeting begins.
What the proposed increase would mean for Chatham County customers
TriRiver Water’s published examples are based on a monthly use of 500 cubic feet, or about 3,740 gallons. Under the proposed 7 percent increase, Chatham County residential water service would rise from $52.11 to $55.80. That is a monthly increase of $3.69, or $44.28 over a full year if usage remains constant.
For Pittsboro customers, the increase would be felt on both the water and sewer sides of the bill. Inside-town Pittsboro customers using the same 500 cubic feet would see water rise from $56.96 to $60.94 and sewer rise from $63.26 to $67.69. The combined bill would go from $120.22 to $128.63, a monthly increase of $8.41.
Outside-town Pittsboro customers would see a larger change because their base charges are higher. The published example shows water rising from $113.91 to $121.88 and sewer from $126.51 to $135.38. The combined monthly bill would increase from $240.42 to $257.26, a difference of $16.84.
The contrast matters because “Chatham County customers” are not a single group with identical bills. Some are former Chatham County Utilities customers receiving water service. Some are Pittsboro customers who receive both water and sewer service. Some customers live inside municipal limits, while others live outside town limits and pay different rates because the cost of delivering service can vary by distance, density and infrastructure.
TriRiver’s published example for Chatham County lists residential water only. That means some county residents will see the proposal as a modest monthly increase, while others in the broader Chatham service area, especially Pittsboro water and sewer customers, will see a larger dollar amount.
Why TriRiver says rates need to rise
TriRiver Water says the proposed increase is needed to cover rising operating costs, including fuel, energy bills, treatment chemicals, sludge hauling, lab equipment, field equipment, maintenance supplies and the basic costs of running a utility around the clock.
Those costs are not abstract. Water systems are heavy industrial operations that most customers experience only through a faucet, a bill or a boil-water notice. Behind the scenes are treatment plants, pumps, tanks, pressure zones, water lines, sewer lines, laboratory testing, federal and state regulations, emergency response crews, billing systems and debt payments for past and future infrastructure.
TriRiver officials have also framed the increase as part of a larger strategy: spend steadily now to avoid sharper increases or costly failures later. That argument is common in the water industry, where utilities often face pressure to keep rates low while pipes, plants and pumps continue to age.
The North Carolina Department of Environmental Quality’s rate-setting guidance warns that artificially low rates can lead to “rate shock” later or to failing systems that threaten public health. The same guidance says the primary goal of rate-setting is full-cost pricing — generating enough revenue to cover the actual cost of delivering water and wastewater service.
That does not make the increase easier for households already absorbing higher prices for groceries, insurance, electricity and taxes. But it explains why local governments often describe water rates differently from general taxes. In an enterprise fund, water and sewer systems are generally expected to pay for themselves through fees charged to customers who use the service.
The process: how the rate hike moves from proposal to approval
The proposed TriRiver increase is moving through Sanford’s budget process because TriRiver Water operates under the City of Sanford. That is one of the practical consequences of Chatham County’s decision to transfer its utility system into the regional utility structure.
Under North Carolina’s Local Government Budget and Fiscal Control Act, local governments operate under an annual balanced budget ordinance. The budget covers the fiscal year that begins July 1 and ends June 30. Before adoption, the proposed budget must be made available for public inspection, and the governing board must hold a public hearing where residents may speak.
In this case, the governing board is Sanford City Council. City staff has proposed the rate increase. The public process includes a June 9 work session and a June 16 City Council meeting, where the budget and rates may be discussed and adopted. If approved, the increase would be part of the upcoming fiscal year’s utility rate structure.
For Chatham County residents, that means the immediate venue for public comment is not a Chatham County Board of Commissioners meeting. The county’s elected leaders played the decisive role in approving the merger agreement, but day-to-day utility operations, billing and rate administration now run through TriRiver Water and Sanford.
That shift may take time for customers to understand. Many residents who previously paid Chatham County Utilities now receive bills from TriRiver Water. Their local water infrastructure did not disappear, and their water source did not suddenly change, but the administrative chain of responsibility did.
How Chatham County got here
Chatham County’s water utility merger with Sanford did not happen overnight. It followed years of discussion about capacity, growth, infrastructure, treatment needs and the cost of operating separate systems across a fast-growing region.
TriRiver Water was created in 2024 when Sanford and Pittsboro merged utility services. Chatham County and Siler City joined the regional system in 2025. Chatham County commissioners approved the agreement in November 2024, and TriRiver took over service to approximately 11,000 Chatham County customers on July 1, 2025.
The merger transferred Chatham County utility assets, billing, accounts, customer service functions and related infrastructure into the TriRiver system. Customers received new account numbers and began paying TriRiver rather than Chatham County Utilities. TriRiver told customers they would not be charged transfer fees or new deposits during the transition.
The larger idea was regionalization. Instead of each town or county trying to finance its own treatment plants, upgrades, staff, regulatory compliance and future capacity, the systems would be managed together. Supporters said a larger utility could spread costs across more customers, reduce administrative duplication, negotiate better prices and plan major infrastructure more efficiently.
Sanford Mayor Rebecca Salmon described the merger as a decision that adds “economies of scale” and strengthens the system. Sanford Assistant City Manager Vic Czar has also argued that a regional utility can help the area reach its potential.
Still, regionalization does not erase costs. It changes how costs are allocated, when they appear and which governing board approves them.
Different systems, different rates — for now
One of the most confusing aspects of TriRiver Water’s current rate structure is that customers in different parts of the system still pay different amounts.
TriRiver says the reason is that Sanford, Pittsboro, Chatham County and Siler City remain separate cost centers for now. The mergers brought the systems together in name and operation, but the water and sewer lines have not yet been fully connected into a single integrated network.
That means a project that clearly benefits one service area is still assigned to that area. If a capital project is needed for Pittsboro, Pittsboro ratepayers may bear that cost. If a cost belongs to Sanford, Sanford ratepayers pay it. Chatham County and Siler City have their own cost centers as well.
TriRiver has said the merger agreements are designed so existing customers are not required to subsidize capital projects needed to bring new areas into the regional system. Over time, as physical interconnections are built and debts are paid down, the goal is rate parity — a point at which revenue and expenses are shared more broadly across the entire customer base.
That goal could take many years. Until then, rate charts will remain complicated, and customers in neighboring communities may pay different amounts for similar levels of service.
The proposed 7 percent increase applies across the TriRiver system, but the actual dollar impact varies because each service area starts from a different base rate.
A second increase for former Chatham County utility customers
For many former Chatham County Utilities customers, the proposed TriRiver increase comes after a period of significant recent rate changes.
In June 2024, Chatham County commissioners approved a 15 percent water rate increase for the county’s water utility customers. County officials said at the time that water usage rates had not increased since 2007 and that the increase was needed to meet rising operational costs and capital improvements.
Then, effective March 1, 2025, Chatham County implemented another 10 percent water rate increase for approximately 11,200 water utility customers. County officials said the average $50 monthly water bill would rise by $5 to $55, though customers would not see the change until later billing cycles.
Now, TriRiver’s proposed 7 percent increase would add another $3.69 to the published Chatham County residential example.
Viewed one month at a time, the increase may seem modest. Viewed over several years, the pattern is clear: Chatham County water customers are now in a period of rising utility costs after many years in which rates did not keep pace with system needs.
That is the tension at the center of the rate debate. Holding rates down for years can be politically popular, but it can also delay the day of reckoning. When growth accelerates, materials become more expensive and infrastructure needs pile up, customers can face multiple increases in a short period.
Growth is driving the regional water conversation
TriRiver’s expansion is closely tied to growth in Chatham and Lee counties.
The Chatham-Siler City Advanced Manufacturing site, major industrial recruitment, residential development in northeastern Chatham, Pittsboro’s growth, Chatham Park and expanding regional demand have all put pressure on local water and wastewater systems. Water is no longer just a household service. It is a prerequisite for economic development, housing construction, fire protection, school capacity, hospital planning and industrial recruitment.
Sanford has positioned itself as a regional water provider because of its infrastructure and access to the Cape Fear River system. The Sanford Water Filtration Facility is undergoing a major expansion designed to more than double capacity, from 12 million gallons per day to 30 million gallons per day. The upgraded plant is also expected to include advanced filtration capabilities.
That expansion is not just for Sanford. Treated water from the expanded facility is expected to serve Sanford and Lee County as well as parts of Chatham County, Moncure, Pittsboro, Holly Springs and Fuquay-Varina. Regional partners are sharing in the cost and capacity.
For Chatham County, the question is not whether growth requires water investment. It does. The question is how much of that investment should be borne by current ratepayers, how much should be assigned to new development, how much should be financed through debt and how clearly the public can track who is paying for what.
Affordability becomes the hardest question
Utility officials often speak in terms of infrastructure, cost centers, debt service and long-term planning. Customers speak in terms of monthly bills.
Both perspectives are legitimate. A water system that does not collect enough revenue will eventually struggle to maintain service. A household on a fixed income may have no easy way to absorb repeated increases.
The UNC School of Government’s Environmental Finance Center has noted that average water and wastewater rates in North Carolina have risen in recent years and that affordability is an increasing concern for local government utilities. The center also notes that rate design can help manage affordability indirectly, but North Carolina law limits the ability of local utilities to charge different rates to individual customers within the same service class based on income.
That means direct assistance often must come through other pathways: general fund subsidy programs, voluntary donation or round-up programs, partnerships with nonprofits or referrals to county social services.
Chatham County previously directed customers seeking financial assistance to the Department of Social Services. Sanford also participates in assistance efforts, including programs that allow customers to help others through voluntary contributions.
Still, assistance programs are often limited. They may help households in crisis but do not fully resolve the broader question of water affordability in a fast-growing region. If water and sewer bills continue to rise faster than household incomes, local governments will face growing pressure to explain not only why increases are needed but also what protections exist for low-income, elderly and fixed-income customers.
The public’s role in the decision
The rate proposal is not final until Sanford City Council adopts the budget and rate schedule.
Customers who want to comment have two immediate opportunities. The first is the June 9 work session at 1 p.m. at the Sanford Municipal Center. The second is the June 16 City Council meeting at 6 p.m. Interested speakers must sign up outside the meeting room by 5:50 p.m. that day.
Residents should understand what public comment can and cannot do. A public hearing may not eliminate the need for additional revenue if the costs are real and the budget is built around them. But public pressure can influence how officials phase increases, communicate impacts, explain cost allocation, expand assistance programs or provide clearer customer-by-customer examples.
For Chatham County customers, the most useful questions may be specific.
How much of the 7 percent increase is tied to operating costs versus capital projects? How much will be spent inside the former Chatham County utility area? How will TriRiver report spending by cost center? What projects are planned for Chatham County customers over the next five years? When will rate parity realistically occur? What assistance is available for households that cannot pay? How will future development contribute to the infrastructure it requires?
Those questions go beyond whether a bill rises by $3.69 in one published example. They go to the heart of public accountability in a regional utility.
A regional system, but local consequences
TriRiver Water’s supporters argue that the regional model will reduce long-term costs compared with each community going it alone. The logic is straightforward: larger systems can share staff, equipment, expertise, debt capacity and infrastructure. They can plan for growth rather than scramble after capacity has already become a crisis.
But regional systems can also make accountability feel more distant. A Chatham County resident may wonder why a Sanford board is making decisions about a water bill in Pittsboro, Moncure or rural Chatham. A Pittsboro customer may wonder why rates remain higher than Sanford’s. A Sanford customer may wonder whether the larger regional system will eventually bring costs from other communities back to Sanford.
TriRiver’s answer is that separate cost centers prevent unfair subsidies during the transition, and that rate parity will arrive only after the systems are physically connected and related debts are paid off.
That explanation may be financially sound, but it requires sustained transparency. Customers need to see not only the rate schedule but also the project list, debt obligations, cost-center accounting and long-term plan.
Water systems depend on public trust. That trust is built through safe service, clear billing, predictable planning and honest communication about costs.
What comes next
If the 7 percent increase is approved, customers would likely see the new rates reflected in bills during the upcoming fiscal year. The monthly impact will depend on service area, whether the customer receives water only or water and sewer, location inside or outside municipal boundaries and actual usage.
For former Chatham County residential water customers, TriRiver’s example shows a $3.69 monthly increase at 500 cubic feet of use. For Pittsboro customers with water and sewer, the increase is larger. For high-use customers, the bill impact will be higher because usage charges increase with consumption.
The proposal is also a preview of future debates. TriRiver has been candid that rates will rise over time. The utility argues they will rise less under a regional model than they would have if Sanford, Pittsboro, Chatham County and Siler City tried to shoulder their needs alone.
That claim will be tested over years, not months. Customers will judge the merger by whether service improves, whether water quality remains reliable, whether capacity expands, whether bills are understandable and whether promised efficiencies materialize.
For now, the next step is a public one. Sanford City Council will hear the proposal, consider the budget and decide whether the 7 percent increase becomes part of the new rate schedule. Chatham County customers who want a voice in that decision will need to follow the process where the rates are now being set: at TriRiver Water’s home government in Sanford.
Long-term solution to a long-term problem?
TriRiver Water’s proposed rate increase is small enough in some individual examples to be described as a few dollars a month, but large enough in context to raise bigger questions about regional growth, infrastructure finance and customer accountability.
For Chatham County customers, the issue is not simply whether water will cost more. It will. The issue is whether the new regional utility can demonstrate that higher bills are buying safer, more reliable and more resilient service — and whether the public can clearly see how the money is being spent.
The merger that created TriRiver’s expanded Chatham footprint was sold as a long-term solution to a long-term problem. The proposed 7 percent increase is one of the first reminders that long-term solutions still arrive in monthly bills.