The largest change affects the structure of the billing system. Prior to Oct. 1 residential customers paid a flat rate throughout most of the year and a tiered rate in the months of May through September. As of Oct. 1 a tiered rate will go into effect for residential customers year-round.
Commercial users, who until Oct. 1 were billed a tiered rate year-round, will switch to a flat rate in all 12 months of the year.
Director of Utilities Michael Thane said this has been done because residential customers have more discretion over spikes in their bills, and commercial users’ usage tends to remain flat.
Thane said the average single-family home uses roughly 6,000 gallons of water per month in winter months and 15,000 gallons of water per month in the summertime. Thane attributed this heightened summertime use to causes including landscaping and higher temperatures.
Four new tier ranges were established in the place of existing ones. Although the first tier historically billed customers using between zero and 18,000 gallons of water per month, the new Tier 1 bills users consuming between zero and 15,000 gallons of water per month.
The highest tier previously billed customers using 30,001 gallons and above, but the new Tier 4 will bill customers using 27,001 gallons and more each month.
Rates assigned to tiers 1, 2 and 3 did not change. The lowest tier, charged for zero to 15,000 gallons used, charges $2.49 per 1,000 gallons used; the next tier, 15,001-21,000 gallons, charges $3.11 per 1,000 gallons; and the third tier, 21,001-27,000 gallons, charges $3.74 per 1,000 gallons used.
Tier 4 rates, which bill consumers using the most water, increased by 62 cents, from $4.98 to $5.60.
Thane said this change was done to pass along the costs for increased infrastructure and capacity to those creating the demand.
Tier 4 customers comprise 10 percent of Round Rock water users but use 30 percent of residential-use water produced by the city.
Residential water rates were also increased. The base rate was increased across the board for residential customers—increasing from $14.69 to $16.04 per month.
These rate and structure changes will be reflected on bills starting in mid-November. There were no proposed increases for wastewater, solid waste pickup or drainage fees as of press time Oct. 30.
These changes are the first in a three-year proposed increase plan that will increase rates by 3.5 percent in fiscal year 2017-18, 3 percent in fiscal year 2018-19 and 3 percent in fiscal year 2019-20.
“We don’t want to have one-year rate shock,” Thane said. “We look at our long-term improvements.”
Revenue added by rate increases will go to covering debt service for the expansion of the BCRUA water system. Currently the city draws water from Lake Georgetown, Lake Stillhouse Hollow and underground wells.
