The Natalia City Council voted unanimously to implement a five-year restructuring of utility rates in order to help pay for upkeep and capital improvements to the water and sewer systems at the regular meeting held last Monday, March 20.
Natalia has received grant funds as well as a 40-year, 1.875% loan from the United States Department of Agriculture (USDA) to help with capital improvements to the water and sewer systems. In order to meet the conditions of the USDA funds, the City conducted a utility rate study, led by Communities Unlimited, Inc.’s Operations Management Specialist Raul Gonzales. The results of the study were reviewed and finalized by City Administrator Lisa Hernandez, Mayor Pro-Tem Sam Smith, and Council members Chip Bluemel, Mike Fernandez, Ruben Juarez, and Tommy Ortiz before being approved on Mar. 9 and formally adopted Mar. 20.
Water and sewer rates will rise for all residential and commercial customers by 1.2% each year for five years, from FY 2017-2018 to FY 2021-2022.
The rate change goes into effect with the Sept. 15-Oct. 15 utility billing cycle that will be billed on Nov. 1, 2017.
Water rates
Current base water rates up to 1,000 gallons per month are $20.50 for residential customers and $23.00 for all commercial customers.
Residential
Residential customers are currently charged the following fee per additional 1,000 gallons: $2.50 up to 10,000 gallons; $3.00 up to 30,000 gallons; $3.50 up to 50,000 gallons; $4.00 up to 75,000 gallons; and $4.50 over 75,000 gallons.
The base rate for residential services up to 1,000 gallons will rise to $25.00 in FY 2017-2018 and remain static for the next four years, though the fee per additional 1,000 gallons per month will increase by 1.2% each year.
Rate increases per additional 1,000 gallons per month for the next five fiscal years are as follows:
FY 2017-2018: 1,001-10,000 gallons, $3.30; 10,001-30,000 gallons, $3.80; 30,001-50,000 gallons, $4.30; 50,001-75,000, $4.80; over 75,000 gallons, $5.30.
FY 2018-2019: 1,001-10,000 gallons, $3.34; 10,001-30,000 gallons, $3.85; 30,001-50,000 gallons, $4.35; 50,001-75,000 gallons, $4.86; over 75,000 gallons, $5.36.
FY 2019-2020: 1,001-10,000 gallons, $3.38; 10,001-30,000 gallons, $3.89; 30,001-50,000 gallons, $4.40; 50,001-75,000 gallons, $4.92; over 75,000 gallons, $5.43.
FY 2020-2021: 1,001-10,000 gallons, $3.42; 10,001-30,000 gallons, $3.94; 30,001-50,000, $4.46; 50,001-75,000 gallons, $4.97; over 75,000, $5.59.
FY 2021-2022: 1,001-10,000 gallons, $3.46; 10,001-30,000 gallons, $3.99; 30,001-50,000 gallons, $4.51; 50,001-75,000 gallons, $5.03; over 75,000, $5.56.
The average bill for a residential household that uses 5,000 gallons of water per month is currently $30.50. Under the new rate scale, the same amount of usage will rise to $38.20 next year, and increase to $38.85 by FY 2021-2022.
Commercial
Additional fees for commercial customers per 1,000 gallons are currently as follows: $3.00 up to 10,000 gallons; $3.50 up to 30,000 gallons; $4.00 up to 50,000 gallons; $4.50 up to 75,000 gallons; and $4.80 over 75,000 gallons.
Base rates for commercial services will rise to $27.50, while commercial services with meters two inches or larger will jump to $55.00.
Rate increases per additional 1,000 gallons per month for the next five fiscal years are as follows:
FY 2017-2018: 1,001-10,000 gallons, $3.80; 10,001-30,000 gallons, $4.30; 30,001-50,000, $4.80; 50,001-75,000, $5.30; over 75,000, $5.60.
FY 2018-2019: 1,001-10,000 gallons, $3.85; 10,001-30,000 gallons, $4.35; 30,001-50,000 gallons, $4.86; 50,001-75,000 gallons, $5.36; over 75,000, $5.60.
FY 2019-2020: 1,001-10,000 gallons, $3.89; 10,001-30,000 gallons, $4.40; 30,001-50,000 gallons, $4.92; 50,001-75,000 gallons, $5.43; over 75,000 gallons, $5.74.
FY 2020-2021: 1,001-10,000 gallons, $3.94; 10,001-30,000 gallons, $4.46; 30,001-50,000 gallons, $4.97; 50,001-75,000 gallons, $5.49; over 75,000 gallons, $5.80.
FY 2021-2022: 1,001-10,000 gallons, $3.99; 10,001-30,000 gallons, $4.51; 30,001-50,000 gallons, $5.03; 50,001-75,000 gallons, $5.56, over 75,000 gallons, $5,87.
The average bill for a commercial customer who uses 15,000 gallons of water per month will jump from $67.50 to $83.20 in FY 2017-2018 to $85.92 in FY 2021-2022.
The average bill for a commercial customer with a two-inch or larger meter who uses 25,000 gallons of water per month will rise from $102.50 to $153.70 in FY 2017-2018 to $158.92 in FY 2021-2022.
Sewer rates
Sewer fees are also being raised.
The base rate for residential households up to 1,000 gallons is currently $16.00 and will increase to $20.50 in FY 2017-2018. The current fee for every additional 1,000 gallons is $1.65. That charge will jump to $2.45, $2.48, $2.51, $2.54, and $2.57, respectively, over the next five fiscal years.
The average bill for a residence that uses 5,000 gallons of sewer per month is currently $22.60. The new rates will increase that to an average of $30.30 next year, and up to $30.78 by FY 2021-2022.
The commercial base rate up to 1,000 is $18.00, which will rise to $22.50 in FY 2017-2018. The fee for every additional 1,000 gallons will increase from the current rate of $1.85 to $2.65, up to $2.78 by FY 2021-2022.
The average bill for a commercial property that uses 15,000 gallons of sewer per month is currently $43.90. That number will increase to $59.60 per month in FY 2017-2018, and up to $61.41 in FY 2021-2022.
Hernandez said at the Mar. 20 Council meeting that a utility rate restructuring plan will be provided to all City utility customers, provided at the Post Office, and available on the City’s website in order to ensure that customers are aware of the upcoming price increases.
Hernandez advised adjusting water consumption to help adjust to the higher rates.
“Reduce the water leaks that you have,” Hernandez said. “Reduce non-essential water usage. Find other methods of not wasting water.”
By Marly Davis
Staff Writer