Magnolia City Council members are expected to consider new categories for utility rates in October after discussing a tiered rate structure during their Sept. 12 workshop with engineering firm Jones & Carter Inc. “When you look at water well production, water well distribution, wastewater collection and wastewater treatment, right now you’re not covering your cost with what you’re charging,” Jones & Carter representative Ed Shackelford said during the meeting. “When you add in depreciation or major maintenance [costs], you’re really not covering your cost.” As it stands, the city’s water rates are based on the size of the water meter, in addition to usage and the nature of the water user. The tiered structure—recommended by Jones & Carter—suggests residential, multifamily, commercial, irrigation and institutional categories. With the recommended change, the tiered structure for the cost of water and wastewater would be based on user category rather than size of water meter. Institutional rates would allow a separate rate for tax-exempt and nonprofit entities, such as schools, government facilities, churches and parks, according to Jones & Carter. Such entities are often large users and do not pay taxes to fund infrastructure growth, Mayor Todd Kana said. “Our citizens have subsidized the schools and nonprofits’ ability to get on this system,” Kana said during a meeting. “It’s just a way to make sure they’re covering their fair share of the system. It’s unfair to ask a bunch of single-family homes to make sure that there is a water system available to these entities just because they’re a nonprofit.” In anticipation of heavy growth, the city is also considering an expansion of its existing wastewater treatment plant or building a new, larger facility, City Administrator Paul Mendes said. He said an expansion is expected to take about six to seven months to complete while construction of a new facility could take up to two years. The council will meet again Tuesday, Oct. 10.