“Sobering” and “a tough one” were some of the ways Manvel city officials described the city’s utility rate increase of 11.2%, which received the first of two needed approvals at City Council’s Aug. 18 meeting.

The item will come up for a second and final vote at a later meeting. If approved, the change will go into effect.

Long story short

Officials said the rate increase was needed to keep up with the repairs needed for the city’s water and utility systems.

The base rates, according to city documents, would be as follows:

• Residential water: $35.58, up from $32.59
• Residential wastewater: $42.70, up from $39.11
• Commercial water: $42.70, up from $39.11
• Commercial wastewater: $49.82, up from $45.63

Volume of water used in addition to the base rate would be set at $3.98—up from $3.34.

Why it matters

The rate in recent years has been too low for the city to properly supply its utility fund, City Manager Dan Johnson said. As a result, the city has at times had to move money from its general fund to subsidize the utility fund.

Mayor Dan Davis noted the utility fund for the fiscal year 2024-25 budget is solvent, with nearly $2.8 million in revenue.

The increase would add $1 million to the fund, according to budget documents. The bulk of those funds would go toward repairs and maintenance, such as coding at water plants and rehabilitation of manholes throughout the city.

Diving in deeper

In November, Manvel City Council opted against a utility rate increase of 6.3%—despite giving the item the first of two approvals needed the month prior.

At the time, those opposed said they were concerned about several unknowns tied to it, as well as how they could justify the increase to residents.

If ultimately approved at a future meeting, the 11.2% rate increase would follow previous increases of 13.4% and 14.9% in 2022 and 2023, Community Impact previously reported.

What they said

Johnson called the increase “sobering,” but added that the city’s proposed budget for FY 2025-26 includes the increase in its totals. If City Council declines to move forward with the rates, parts of the budget will need to be reconsidered.

Davis called the decision to vote in favor “a tough one,” but said it was necessary for Manvel’s future.

“If it were to add a bunch of fluff, I wouldn’t be for it,” Davis said. “But it’s to go to necessities.”

Looking ahead

The item will need two approvals to go into effect. The second one will be voted on at a future City Council meeting.

Meanwhile, future rate changes are also on the schedule, including a potential 9.1% increase next year. However, officials said that could change depending on several factors.