What to know
City staff and Bleyl Engineering engineers completed a utility rate study to determine what changes need to be made for revenues to better match expenses, according to the agenda packet. The proposed rate will cover rising operation and maintenance costs and costs for capital improvement projects for the next five years, acting City Administrator Joseph Peart said.
An increase of an average of $5 per month for 7,000 gallons of usage was previously enacted in 2020, the first increase in 10 years, as previously reported by Community Impact. With the new ordinance approved Oct. 22, a residential customer using 3,000 gallons per month will pay an additional $3.80 per month, according to discussion at the meeting.
“The increase of percent from 2020 to 2025 in terms of revenue is 2.5%, and part of that is good planning and being conservative,” Bleyl Engineering President and CEO John Bleyl said.
Zooming in
The rate structure remains tiered so that higher-usage customers pay an increasingly higher amount. Such tiered systems are common to promote conservation efforts, Bleyl said.
The proposed rate increase translates to a projected revenue of $74,916.67 per month for the city, which includes funds to build the water and sewer reserve for costly emergency repairs, Peart said.
The study states that Shenandoah has the lowest residential costs for monthly usage of 7,000 gallons compared to nearby local cities:
- $60.75 for Shenandoah under its new rate
- $102.15 for Oak Ridge North
- $112.98 for Conroe
- $116.89 for Rayford Road Municipal Utility District
- $66.55 for the city of Montgomery
Peart named Rual Porras as the new interim Public Works Director, the role Peart previously held before taking on the acting city administrator position following the departure of Kathie Reyer.
