How we got here
A Water and Wastewater Rate Study was completed by Willdan Financial Services in late 2018, which was adopted by a previous council in early 2019. The study provided rate changes in water, wastewater and sewer rates for the city of Liberty Hill customers, according to meeting documents.
The study recommended a two-year rate plan, with adjustments in January 2019 and January 2020, and it also provided forecasted rates for the following three years.
Officials said the January 2019 adjustments went into effect in April 2019 and is the current rate charged to utility customers. The reasons for the January 2020 rate adjustments not being adopted and implemented are unknown as it was a different council at the time.
City staff will be conducting a new rate study, which could start this year and is anticipated to be wrapped up by late 2024. However, staff does not think the city can wait until the study is completed to raise rates.
What officials are saying
Finance Director Sidney Smith said the city is losing revenue by not increasing the rates.
“We’ve already fallen behind in these utility rates, so if we don’t do something now, we’ll just continue to fall behind,” she said at the June 14 council meeting. “It is needed for our system, especially our water. We need to go ahead and put something into place.”
Director of Public Works David Thomison said the money is used to maintain the city’s water and wastewater infrastructure, and not raising the rates hinders the necessary system improvements.
“[It] becomes a constraint on the utility to be able to maintain the infrastructure that’s aging, so it would limit our ability to be able to go in and make necessary improvements,” he said. “Ultimately, that’s what the rates are for is to operate and to maintain. With the growth and keeping up with the growth, we need to make sure that we’re keeping up with the proper rates to be able to do what’s needed to support the community and the infrastructure.”
Current and forecasted rates
According to the city’s 2018-19 water and wastewater rate study, the January 2019 water rates—which are the current charges—for in-city residential and commercial customers is at a monthly minimum charge of $35.09. The forecasted rate for January 2021 is $37.95, and $41.05 for January 2023.
The January 2019 wastewater rates for in-city residential customers is at a monthly minimum charge of $49.67 per living unit equivalent. Forecasted rates for January 2021 and January 2023 are $57.86 per LUE and $62.58 per LUE.
The action taken
Council unanimously voted to implement the January 2021 rates starting Oct. 1. Rates plus any additional charges for residential, commercial, in-city and out-of-city customers can be found here.
One public hearing and the official passing of an ordinance are required for the rates to begin in October.
