HomeMy WebLinkAbout20230807 2023 Rate Increase Presentation final (2)Water Utilities Department
August 8, 2023
PRESENTED BY
Dr. Hani Tohme, P.E .
Budget Update
Proposed Water & Sewer Rate Increase
Capital Program
Budget Update
2
Revenues vs. Expenditures
Fiscal
2018
Fiscal
2019
Fiscal
2020
Fiscal
2021
Fiscal
2022
Estimated
Fiscal 2023
Proposed
Fiscal 2024
Rate
Increase
Yes
4/24/2018 No No Yes
3/30/2021
Yes
8/30/2022 No 7%
Recommended
Revenue $27,554,670 $27,311,588 $27,289,288 $30,514,041 $32,523,031 $35,200,000 $37,543,300
Expenditure $25,646,295 $28,721,914 $29,006,297 $29,193,074 $30,678,420 $33,163,123 $36,616,700
Difference $1,908,375 ($1,410,326)($1,717,009)$1,320,967 $1,844,611 $2,036,877 $926,600
*Estimated Based on Revenue & Expenditures up to June 2023
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•Revenue projections are based on revenues up to June 2023
and actual 21-22 revenue.
•Expenditure projections are based on expenditures up to
June 2023.
•Revenue and expenditure projections can change based on
unprecedented events, such as hurricanes, hot summers,
major equipment/infrastructure failures, etc.
Notes
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Rate Increases Implemented
To Support Operating Budget & Capital Program
Fiscal
2018
Fiscal
2019
Fiscal
2020
Fiscal
2021
Fiscal
2022
Fiscal
2023
Fiscal
2024
Rate Increase Yes
4/24/2018 No No Yes
3/30/2021
Yes
8/30/2022 No TBD
Implemented RTS fee --3% water
12% sewer 7%-7%
proposed
Willdan
Recommended ---9.8%10.1%10.0%3.6%
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Water & Sewer Rate Analysis
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Current Cost for 5,000 Gallons Usage
Water & Sewer in Cities of 50-100K Populations
City Total (based on 5K)
New Braunfels $102.69
Rowlett $92.35
Flower Mound $90.77
Statewide Average $81.03
Euless $80.74
Port Arthur $73.72
Conroe $70.85
Temple $60.85
Mansfield $59.62
Victoria $55.14
North Richland Hills $52.75 7
Current Cost for 5,000 Gallons Usage
Water & Sewer in Neighboring Cities
City Total
Winnie/Anahuac $97.85
Statewide Average $81.03
Orange $75.07
Port Arthur $73.72
Beaumont $65.34
Groves $55.85
Nederland $49.67
Lumberton $48.38
Port Neches $44.36
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Proposed Water & Sewer Rate Increase
9
Usage
Current
Min. Usage
Fee/RTSC
Recommended
Min. Usage
Fee/RTSC
Current
Rate per
1,000 gal
Recommended
Rate per 1,000 gal
Water $8.35 $8.93 $5.63 $6.02
Sewer $9.07 $9.70 $5.63 $6.02
7% Water & Sewer Rate Increase
Impact on Inside City Limit Residential Usage Under 10,000 Gallons
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Category Current Rate
Per 1,000 Gal
Recommended Rate
Per 1,000 Gal
Residential Water 10,001-50,000 gal $5.91 $6.32
Residential Sewer 10,001-50,000 gal $5.91 $6.32
Residential Water 50,001 and more gal $6.21 $6.64
Residential Sewer 50,001 and more gal $6.19 $6.62
Comm./Ind. Water Under 10,000 gal $6.12 $6.55
Comm./Ind. Sewer Under 10,000 gal $6.11 $6.54
Comm./Ind. Water 10,001-50,000 gal $6.43 $6.88
Comm./Ind. Sewer 10,001-50,000 gal $6.42 $6.87
Comm./Ind. Water 50,001 and more gal $6.74 $7.21
Comm./Ind.Sewer 50,001 and more gal $6.73 $7.20
7% increase for Residential Over
10,000 Gallons & All Commercial & Industrial Tiers
Inside City Limits
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7% Water & Sewer Rate Increase
Impact on Inside City Limit Residential Usage Under 10,000 Gallons
Usage
Current
Water and
Sewer Bill
Recommended
Water and
Sewer Bill
Recommended Total
Monthly Additional Cost
5,000 Gallons $73.72 $78.88 $5.16
4,000 Gallons $62.46 $66.83 $4.37
3,000 Gallons $51.20 $54.78 $3.58
2,000 Gallons $39.94 $42.74 $2.80
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Proposed Capital Improvements Program
13
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Capital Improvements Objectives
Protect public health and safety, provide uninterrupted
services, and improve the quality of life
Meet/exceed Environmental Protection Agency (EPA) and
Texas Commission on Environmental Quality (TCEQ)
requirements and regulations
Rehabilitate/replace aging infrastructure
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Questions
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