Cottonwood Shores eyes changes to water rates
COTTONWOOD SHORES — City leaders are looking for ways to pay for a new Lower Colorado River Authority water contract without passing the expected cost increase to low-income residents.
The council on March 25 held off on making a decision on the proposed rate changes, which officials said could appear on residents’ April bills. The issue will be discussed again at the next council meeting April 5.
Some council members said they want to explore ways to spare residents any increases on their bills.
“We cannot do this to these people in this community,” Councilwoman Janet Taylor-Carusi said. “These little old ladies who are retirees get $600-$700 dollars per month, and they cannot stand this increase.”
City Treasurer Rick Copple said the city is in negotiations with LCRA to reserve up to 650 acre-feet of water per year for the city’s use, a considerable increase over the current contract for 138 acre-feet per year.
An acre-foot is enough water to cover an acre of land to a depth of one foot, or 325,851 gallons. An average household uses about 2,000 gallons of water per month.
City Administrator Karrie Cummings said the city for the last several years has exceeded the 138-acre-foot limit, forcing Cottonwood residents to foot the bill for penalties charged by the LCRA.
The new contract is intended to reserve enough water for 40 years, taking into account some growth estimates that expect the city’s population increase to more than 10,000 by 2050.
However, Cummings said those extra water reserves will come at a cost.
“We will pay for the water that we use, then a 50 percent reservation fee for the rest (up to the 650 acre-foot limit),” Cummings said. “We wanted to reserve enough water for Cottonwood Shores for the next 40 years.”
Figures provided by the city show an expected cost of about $27,005 for water under the new contract, with a series of stepped rate increases based on water usage to cover the cost.
Under the new rate, the average monthly utility bill for a customer using the minimum of 2,000 gallons or less will increase by $2.25 to a total of $30.40, Copple said.
Residents using more than the 2,000 minimum would pay an additional fee per 1,000 gallons used, with charges increasing depending on the amount, officials said.
The cost of the increase will be offset by recent revelations that the city’s solid waste-pickup contractor, Austin-based IESI, had incorrectly allowed the city to pay a sales tax to the state for its services.
Copple said that mistake has been corrected, adding the garbage contractor will pay the city $20,000 to cover some of the back taxes paid by the city.
“From this point on, we’ll be deducting that amount of of (residents’) bills,” he said. “We’ll be able to lower our solid-waste rates.”
The city also could use some of the extra $20,000 to cover a portion of the increased water costs, minimizing the impact on residents for at least a year, Copple said.
One of the suggested solutions included additional rate increases to residents using more than 2,000 gallons per month, while leaving the minimum cost the same.
Resident Donald Orr said additional cost decreases could be achieved by encouraging residents to conserve water.
“I recommend decreasing usage to 75 gallons per person per day,” Orr said. “If we implement a conservation program, I believe we can get close to 75 gallons.”
Councilwoman Martha Logan said future water rates could encourage conservation through fiscal means.
“We can encourage you to decrease your usage,” she said. “Those who use below (the minimum) amount, will be rewarded by a lower rate.”
The council voted to table the discussion until a later meeting. The next council meeting is set for 6 p.m. April 5 at the Public Library 4111 Cottonwood Drive.