Holly Springs, NC, Sep. 2, 2026 — The Holly Springs Town Council, during last night’s council meeting, approved a $133,000 contract (document) with Raftelis Financial Consultants to review how the town calculates water and sewer rates, including whether large industrial customers are paying an appropriate share of the cost to serve them. The study comes as Holly Springs plans more than $500 million in water and sewer capital investment over the next five years.
Raftelis is expected to present its findings at the Mayor and Council Retreat in February of 2027. The study will examine the town’s financial needs, the cost of providing service to different customer types, and possible changes to rate structures.
Holly Springs’ continued growth, including expansion of its life sciences manufacturing sector, is increasing demands on the town’s utility system. Fujifilm Biotechnologies and Amgen are among the major industrial customers cited in the Raftelis proposal (document) included with the town’s contract documents.
The town’s five-year utility plans include a $222.4 million expansion of the Utley Creek Water Reclamation Facility, an $81.8 million partnership with Sanford for additional water capacity, and a $59.8 million pipeline to convey water to Fuquay-Varina.
The arrival of large industrial water customers in recent years has also raised questions about the town’s existing rate structure. Under the current fee schedule, those customers are billed for water consumption at the lowest inclining-block rate, which is also the rate residential customers receive for their lowest level of water use. The study will examine whether that structure adequately reflects the cost and system capacity required to serve large industrial users.
The study will also consider existing agreements between the town and large industrial customers. According to the contract documents, any revised structure would need to address the difference between existing rates and the cost of providing service.
The first phase of the Raftelis work is a comprehensive water and sewer rate and financial planning study costing $65,000. It will include a cost-of-service analysis for different customer classes, with particular attention to large industrial users and multifamily properties.
Raftelis will also develop financial models that town employees can continue using after the study is completed. The model will allow the town to test different financial and rate scenarios, including changes associated with shifting its water supply from Harnett County toward the TriRiver Water partnership.
The consultants will then develop possible rate structures designed to recover the town’s costs while accounting for Holly Springs’ goal of increasing its nonresidential customer base.
The remaining $68,000 in the contract covers three optional phases that the town can authorize if needed. Those include $10,000 to update high-strength wastewater surcharges paid by industrial dischargers, $38,000 to recalculate water and sewer system development fees, and $20,000 for documentation that could be needed if the town issues additional revenue bonds.
Work on the project begins this fall with data collection and a kickoff meeting. Raftelis’ schedule calls for draft findings to be completed in time for presentation to the council in February. Any rate changes Raftelis recommends would have to return to the Town Council for approval before they could be enacted.
Raftelis (website), based in Charlotte, was founded in 1993 and specializes in financial consulting for water and wastewater utilities. The company says it has worked with more than 2,000 utilities nationwide, including Cary, Raleigh, Durham, and Apex.
This story is part of HSU’s ongoing coverage of Holly Springs growth and infrastructure planning.