City council discusses possible water rates

By Matt Smith/msmith@trcle.com

August 11, 2008 10:42 am

KEENE — Keene City Council members discussed possible water rates for the upcoming fiscal year during a Thursday workshop session.
Council members reached no final decision and could possibly revisit the matter between now and the start of the next fiscal year, which begins Oct. 1.
Bill Guinn, a city accountant, presented information outlining various water rate possibilities.
Residents presently pay $15 for the first 1,000 gallons and $6.30 for subsequent 1,000 gallons. It costs the city up to $10.17 to deliver each 1,000 gallons. The cost depends on whether the water comes from city wells or is purchased from the Brazos River Authority. Falling production at some city wells coupled with increased costs of water purchased from BRA compounds the problems and shortfalls, officials said.
The current proposal would increase the base rate — the cost of the first 1,000 gallons — from $15 to $25. The cost per additional 1,000 gallon units would rise to $8.70.
Those using more than 75,000 gallons per month would pay $9.20 for each 1,000 gallons over 75,000.
Those consuming more than 100,000 gallons a month would pay $9.20 for each 1,000 gallons used over 100,000 gallons.
Council members also proposed increasing the cost of water sold to gas companies for well-drilling purposes from $6.30 to $9.42 per 1,000 gallons.
The proposal anticipates a range of 75 percent city well water and 25 percent BRA water to 60 percent well water and 40 percent BRA water.
City wells produce about 560,000 gallons per day, Guinn said. The city sells about 1.3 million gallons per day during peak months, however, requiring them to purchase the more expensive BRA water.
Peak times occur during summer months and decline in cooler months, Guinn said.
Council members discussed the need to increase rates to offset a budget shortfall but expressed concerns about conservation.
“This is a two-prong deal,” Councilman James Coleman said. “We need to make the system pay for itself and get back right side up, but we’re also going to hit the wall on water sooner than we think, so we need a tiered system to promote conservation. If we keep going at this rate, we’re going to be looking for new water sources within five years.”
Council members had planned to discuss the proposed tax rate for the coming year during Thursday’s workshop but delayed discussion on the matter. The council scheduled a 7 p.m. Monday workshop session to address the matter.

Keene City Council elections
Ward III Place II Councilman Robert Cooper filed for re-election in the Nov. 4 city council election. So far Cooper and Mayor Roy Robinson are the only two candidates to have filed. Candidates have until 5 p.m. Aug. 26 to file for this year’s four contested seats.
Up for election this year are the mayor’s seat and council seats for Ward I Place II, Ward II Place II and Ward III Place II. The incumbents are Roger Ackermann, Robert Bischoff and Cooper respectively.
Early voting for the Keene city elections takes place from Oct. 20-31.

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