Magnolia City Council members were sent a letter with threat of legal action Dec. 12 from the Texas Pastor Council—in conjunction with First Liberty Institute—regarding water and sewer water rates implemented last spring, but the city has yet to respond, Community Impact Newspaper confirmed Jan. 23 with Reed Smith, counsel for First Liberty Institute.

The letter gives city officials 60 days—or until Feb. 15—to correct the discriminatory rates, Smith said. First Liberty Institute is representing the Texas Pastor Council, First Baptist Church Magnolia, Magnolia Bible Church, Believers Fellowship and the members of the respective churches in dealings with the city of Magnolia, according to the letter.

A discussion is ongoing between the parties regarding an institutional category that was added to the city’s water and sewer rate structure last spring.

City Council members voted last spring to adjust water and sewer rates, revise the rate structure and group institutions—tax-exempt, nonprofit or government entities such as churches and schools—into their own category, Community Impact Newspaper previously reported. Institutions were previously grouped with commercial businesses but are now charged a higher rate. Institutions do not pay property taxes or impact fees—one-time fees collected to fund a user’s share of the city’s water or wastewater capacity.

Although Magnolia City Council met for a regular meeting Jan. 8, council members did not discuss the litigation threat.

Council meets again at 7 p.m. Feb. 12 at 18111 Buddy Riley Blvd., Magnolia.