Selma Discusses Adjusting High Utility Deposit Rates For New Residents

SELMA – Town officials are reviewing Selma’s utility deposit policy after concerns were raised about the financial burden placed on new residents — particularly those with poor credit.

During a recent meeting, Councilmember Susan Parrish Watson called the current deposit structure “burdensome” for families already facing significant relocation expenses. Selma currently charges the highest utility deposits in Johnston County for customers with lower credit ratings, classified as green, yellow, or red — with red being the highest risk tier.

Under current policy, high-risk residential customers must pay a total $1,800 deposit, broken down as follows:

• $1,000 for electricity
• $400 for water
• $400 for sewer

Watson noted that these rates can discourage people from moving into Selma and questioned whether the deposit could be paid over time, such as in three monthly installments. However, Town Manager Alexis Carter responded that such an approach would be difficult to manage administratively.

In comparison, neighboring towns charge significantly lower deposits for high-risk customers:

• Clayton: $1,040 total ($800 electric, $120 water, $120 sewer)
• Benson: $650 total ($450 electric, $100 water, $100 sewer)
• Smithfield: $500 total ($400 electric, $100 water)

Town staff have been instructed to review the deposit rates. The issue may return for future town council discussion once the staff completes its review.