Uncertainty surrounding groundwater conservation rules set by the LSGCD—an entity that regulates groundwater resources in the county—led in part to an SJRA rate increase announced in June, SJRA officials said. They also cited uncollected revenue and the need to fund the SJRA’s surface water treatment plant as other reasons.
“The [Groundwater Reduction Plan] was built to satisfy [the LSGCD’s] requirements that we develop a plan to use less groundwater,” SJRA General Manager Jace Houston said in a statement. “Changing the rules is costly for utilities, cities and MUDs. Ultimately everyone’s water bills go up, not down.”
On June 28, the SJRA—an entity tasked with implementing LSGCD groundwater rules—announced plans to increase groundwater and surface water rates for fiscal year 2020, which began Sept. 1. The SJRA’s new rates are $2.73 per 1,000 gallons for groundwater and $3.15 per 1,000 gallons for surface water—an increase from $2.64 and $2.83, respectively.
However, on Aug. 14 the LSGCD reduced its water rates from $0.105 to $0.085 per 1,000 gallons due to anticipated revenue, expenses and activities after reviewing the 2020 budget, officials said in a statement.
The rate increases
The SJRA rate adjustment applies to cities, municipal utility districts and independently owned utilities participating in the SJRA’s Groundwater Reduction Plan, including the city of Magnolia and other Montgomery County water users.
Despite the water rate increases, SJRA officials said the cities of Magnolia and Conroe have not been paying the full rates: In 2016, Conroe and Magnolia signed resolutions stating they refused to pay the SJRA’s fee increases back then, so the SJRA filed a lawsuit against the cities.
Magnolia Mayor Todd Kana said the SJRA rate increase imposed on municipalities will not increase Magnolia residents’ water bills until ongoing litigation with the SJRA is addressed.
“I don’t know why they need to keep increasing [a rate] that was built basically on a ruse anyway. We essentially pay the SJRA protection money since our citizens have never actually used a drop of water from them,” Kana said. “But we have no plans to pay them until we get our legal issues sorted out.”
The SJRA implemented its Groundwater Reduction Plan as a result of the groundwater reduction mandate issued by the LSGCD in 2009.
The mandate tasked large-volume water users, including Magnolia, to reduce their dependency on groundwater by 30% of their 2009 usage by 2016.
However, LSGCD’s groundwater reduction mandate was declared void and unenforceable by Judge Lamar McCorkle in May after years of litigation. The Texas Water Development Board also rejected the LSGCD groundwater rules in May, instructing the LSGCD to use management plans approved by groundwater districts in surrounding counties.
The TWDB said these plans should be similar to the ones approved by the other four nearby groundwater districts within Groundwater Management Area 14 across 20 Houston-area counties, but the LSGCD could accept the old 2010 or 2016 groundwater rules.
“The district must manage and regulate the groundwater in Montgomery County without violating Texas law and while protecting personal property rights,” LSGCD board Treasurer Jim Spigener said in a statement. “We cannot afford another expensive and divisive lawsuit.”
However, the LSGCD is appealing the TWDB’s rejection of its groundwater management plans, LSGCD General Manager Samantha Reiter said.
The goal is to have a draft of the new groundwater regulations ready for public comment by September, she said.
