At Tuesday's Round Rock city council meeting, Director of Utilities Michael Thane proposed an increase of water rates to keep up with rising operating costs and a coming expansion to the Brushy Creek Regional Utilities Authority.

Thane suggested increasing the base rate for all customers and adjusting the tiered system for commercial and residential use.

Under the proposal, the base rate for single family customers would increase from $14.69 to $15.94, a total difference of $1.25. Tiers, which are currently only implemented during summer months, would be extended year round, with a few differences in price.

The lowest tier, charged for zero to 14,000 gallons used, would cost $2.49 per 1,000 gallons used; the next tier for 14,001 to 20,000 gallons would cost $3.11 per 1,000 gallons; and the third tier for 20,001 to 26,000 gallons would cost $3.74 per 1,000 gallons used. None of these tiered prices show any change from prices in the current system.

The highest tier, for anything above 26,001 gallons, however, would jump to a cost of $5.60, an increase of 62 cents from the current rate.

Commercial users, which includes those living in multi-family complexes, would switch from a tiered rate to a year-round flat rate. Thane said this change comes because most water use by commercial users is non discretionary.

He said while residential use of water spikes in the summer time from outdoor watering among other things, commercial use tends to stay flat. Thane said anywhere between 70 and 86 percent of residential users remain in the first tier during the summertime, while 95 percent of users fall into that category during the rest of the year.

He said the average single family home uses roughly 6,000 gallons of water in winter months and 15,000 gallons of water in the summertime.

Commercial users would experience the same jump in base rate to $15.94. They would then pay a flat rate of $2.72 per 1,000 gallons of water used.

Round Rock City Council plans to meet with wholesale users of the water system, including MUDS, on Aug. 16, and then discuss the rate increase publicly on Sept. 14 and Sept. 28. If approved, rates will go into effect on Oct. 1, meaning that the first bill with new rates will be issued in November.

Thane recommended no changes to the current wastewater rate for the next three years.