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ChatGPTClaudePerplexity· Related development
Rate consultant recommends keeping the adopted 11% increase; council leans toward holding water rates and weighs steeper top tiers
On the rate item (5.2), NewGen said the rate study had been paused in May and its funding moved to the billing review, and recommended restarting it after the new year. It said the 11% increase adopted with the 2026/27 budget (8% for capital plus 3% for the Texas Water Development Board loan), which takes the 3,001-10,000-gallon water rate from $3.63 to $4.03 and starts November 1, was "the right rate action," citing the planned wastewater plant and the CRMWA II regional water project, and that raising rates in smaller, more frequent steps is easier for customers. It cautioned that putting 10,000 gallons in the minimum bill would require raising the minimum or the other rates and would weaken the conservation signal. Under the adopted rates each water tier costs about 31%, 48% and then 13% more than the one below; the Texas Water Development Board's conservation guidance suggests 25% to 50%, so the top tier, reached by about 3% of customers, could be raised with little revenue effect. Holding the 3,001-10,000 tier at $3.63 would forgo roughly $1 million a year, partly offset by raising the top tier from $7.80 to $11.70 (figures "subject to check"). Staff said bond counsel had no concerns at the 3% for the loan, whose payments start next budget year. Council members said they did not want to raise water rates until the billing problems are resolved, and the mayor's summary of direction held water at 2025/26 rates while letting the sewer increase proceed. In public comment a resident proposed lowering meter charges so customers under 10,000 gallons pay the same, with 10% more for larger users, and separating water and wastewater accounting.[1][2][3]
Cole StanleyLes SimpsonNewGen Strategies and Solutions
