As fiscal year 2016-17 city budgets have been finalized, Conroe residents will see an increase in their sewer rates in the coming years as the city preps for a new wastewater treatment plant. In Montgomery, residents can expect to see higher water bills.
Water and sewer rates often increase due to costs associated with routine maintenance and operation, and sometimes are felt only by businesses and larger properties, Montgomery City Administrator Jack Yates said.
Conroe sewer rate increase
Conroe City Council approved a 10 percent increase in sewer rates for FY 2016-17 to bring the rate in line with current operation costs, Director of Infrastructure Services Scott Taylor said. The adjustment increases the maximum a homeowner could pay for sewer services from $43.13 per 10,000 gallons to $47.44.
“Based on previous water and sewer rates, the water rate was actually supplementing the sewer system, and [the increase] was just part of the process to move where revenue covers the cost of operating,” he said.
Every year, the city conducts a water and sewer rate study to examine current rates and possible future increases or decreases. The 2016 rate study, which was completed in August, projects no increases in water rates until 2024. However, sewer rates may fluctuate in the coming years—there is a possible 10 percent increase planned for FY 2017-18, a 22.5 percent increase for FY 2018-19 and a 44 percent increase for FY 2019-20.
Because these percentages are just estimates, actual increases or decreases may change. Rate increases are necessary to maintain a minimum 90 day operating revenue reserve and provide coverage for debt-service payments as well as cover costs for the city’s pending wastewater treatment plant, officials said.
The site Conroe had originally considered for a second wastewater treatment plant, at Grand Central Park near South Loop 336 and I-45, is being reconsidered because the city would not be able to produce enough water, Taylor said. Officials are looking to secure a permit from the Texas Commission on Environmental Quality that would allow 12 million gallons to be produced per day, but the proposed site’s maximum is 8.5 million gallons per day.
“This would mean that eventually we would have to expand that plant or find another site, and it doesn’t make sense to have three wastewater plants in the city right now,” he said.
Officials hoped to have the new plant online by 2019, but because new sites must be considered, it could be closer to 2020, Taylor said. Two undisclosed sites are in the running, but permits are still pending. A final design needs to be approved as well, and once those steps are taken, construction will take about 30 months. The estimated cost for the project is $60 million.
Montgomery increases
Water fee increases in Montgomery were necessary because the city needed more revenue to cover operation and maintenance costs, Yates said.
“The city was just barely meeting regular expenses and not providing enough for maintenance and depreciation of the system,” he said.
After conducting a water and sewer rate study and receiving feedback from residents, City Council voted to maintained the minimum charge for water users who use less than 2,000 gallons per month. However, there is a $6 per month increase for the average water user of 7,000 gallons per month, which accounts for 30 percent of residents.
Larger institutions, such as schools and apartments, will feel the biggest increase, Yates said. The new rates will bring an additional $180,000 for the FY 2016-17 budget.
“The [expected revenue] increase will possibly pay for improved maintenance of the system for next year,” Yates said. “Hopefully maintenance costs will reduce over the next few months allowing some of the increase to go toward depreciation costs.”
