Marble Falls OKs nearly 11 percent water rate hike to pay project debt
The Marble Falls City Council is scheduled to approve a water rate hike on Oct. 18 that will increase the average customer water bills by 11 percent. That money will be used to pay the debt on city infrastructure projects, including improvements to the water system. Staff photo by Jared Fields
CONNIE SWINNEY • STAFF WRITER
MARBLE FALLS — A water rate hike approved by the Marble Falls City Council will increase water bills citywide by nearly 11 percent to pay the debt on infrastructure projects — some of which were ordered to bring the system up to state standards, officials say.
“We’re upgrading the daily water capacity of the water plant to basically modernize it where it should be as far as capacity,” Assistant City Manager Caleb Kraenzel said.
The Marble Falls City Council is scheduled to approve the rate hike as well as a 12 percent sewer service increase during the Oct. 18 regular meeting.
Overall water bill increases will vary depending on use.
“It’s affecting everybody differently depending on what tier you’re in,” Finance Director Margie Cardenas said.
The tier system is divided as follows:
• less than 10,000 gallons per month (typically residential)
• from 11,000-30,000 gallons per month
• more than 30,000 gallons per month (typically larger users such as hotels and car washes)
The following examples demonstrate potential monthly water rate increases connected to the hike:
• Users of approximately 5,000 gallons per month can expect to see a $4.96 (12.8 percent) per month rate increase.
• Those hitting about 20,000 gallons per month could see an increase of $12.46 (11.15 percent) per month.
• Businesses or others using more than 40,000 gallons per month could experience a $22.46 (9.04 percent) increase on their monthly bill.
Officials estimated increased revenue from the water bill hike would raise approximately $300,000. The sewer rate hike is estimated to add about $150,000 in revenue.
“It will pay for, on the water side, the two big projects that the Texas Commission on Environmental Quality has instructed the city that we must upgrade our infrastructure,” Kraenzel said.
TCEQ ordered the city to expand the water plant because of capacity concerns.
The city issued bonds to cover the projects, while the rate increases will help pay off that debt.
“(The rate increases) will allow us to take on water and sewer revenue bonds that we’ll use to pay for these projects, and then we’ll use the debt service for the water and sewer upgrades,” he said.
Phase 4 of the water plant upgrade, which is currently in design, is expected to cost $3.95 million.
Other upgrades involve work on or replacement of two water storage tanks located on Via Viejo street ($900,000).
“One of them is deficient and leaking water,” Kraenzel said. “The smaller one, we’re probably going to get a bid to rehabilitate it.”
Proposed projects also include water line upgrades starting at RR 1431 East, which distributes water to the east side of the city as well as transports water from the Mustang water tower just off Manzano Mile to serve the Mormon Mill Road subdivision ($340,000).
One more project involves water line upgrades along Broadway Avenue ($140,000).
connie@thepicayune.com