Thursday, April 18, 2024
Although a decision will be made during an upcoming Gatesville City Council meeting, Council members were given a sneak peek at a water and sewer rate study which could result in increased fees for customers.
City Manager Bill Parry said the study, which will be presented in greater detail during an upcoming Council meeting, considers a price increase which the city will have to pay to the Brazos River Authority for water rights, as well as expenses for staffing, chemicals used for water treatment and maintenance.
In addition to the base rate, changes may be recommended in the volumetric rate – based on the amount of water used by customers.
"Everybody pays the same base rate," Parry explained, "and we try to balance the base rate and volumetric rate."
In 2018, the Council voted to keep the base rate the same regardless of the size of the water meter customers have. A consultant studying the best and most efficient way for the city's water department to operate has recommended that customers with larger water meters be charged a higher base rate than those with smaller ones. A larger meter allows more use.
Based on the current policy, Parry noted, "Wal-Mart pays the same amount for the first 1,000 gallons as other customers."
One possible change is that the water rates would be based on a tiered structure, and those who use more water or who require larger meters might be charged a higher rate.
Capital improvement projects to make improvements in the city's water and wastewater infrastructure cannot all be funded out of the pool of money the city receives for water service without raising rates substantially, so in order to keep rates lower for customers, one recommendation will be that the city fund some of those improvements through debt services.
"We will have to talk to a financial adviser to determine how much we can afford," Parry said. "It wouldn't be rate funded, it would be debt funded to avoid a high cost for customers."
Raw water rights which are purchased from the Brazos River Authority have gone $5 per acre foot of water to $88 per acre foot, and Parry said the expectation is that rates will continue to rise an average of $4 to $5 per year.
Two likely recommendations for the Council to consider will be to "tie the base rate to the meter size" and to have the "volumetric rate based on a formula in which those who use the most water pay a higher rate," Parry said.
To maintain the current level of service and also pay for equipment maintenance or improvements, "we will need to increase rates slightly over the next three years," Parry said. He anticipated a recommended increase of about $3.50 per month.
Despite the proposed increases, Parry noted that "the water and sewer rates in Gatesville are some of the most affordable you'll find."
He said that even those using 5,000 gallons in Gatesville have rates "half of what they are in McGregor, Marble Falls or somewhere else."
Based on consultants recommendations, the Council will likely be asked to increase water rates for the 2023, 2024 and 2025 fiscal years, with no increases expected for 2026 or 2027.
More discussion – and a possible vote – on water and wastewater fees for Gatesville is expected at the Aug. 16 Council meeting.
