Bellaire’s water rates are going up.
There’s no if, ands or buts about it.
That was the consensus from Monday’s Bellaire City Council and Town hall meeting. During the town hall meeting, it was revealed that the water rates could be doubled in the next fiscal year.
The picture below shows the current rates versus the proposed rates from Monday’s presentation.
The council, during the regularly scheduled city council meeting, gave City Manager Paul Hoffman direction, based on some of the comments received during the town hall meeting, and will now wait for a second presentation on the water rates.
The presentation was a results of a rate study conducted by Superior Water Management LLC, in conjunction with Bellaire’s public works and finance department.
“The goals and objectives of the rate study, we were looking to more closely align the revenues we were bringing in, with the expenses,” said Brant Gary, the city’s Director of Public Works.
The picture below shows the current rates versus the proposed rates from Monday’s presentation. Bellaire City Manager Paul Hoffman said the “working assumption,” is the new rates, once approved, will go into effect October 1st, which is the start of the next fiscal year.
During the town hall meeting, speakers brought up concerns with the big rate hike but admitted the city’s water system is something that needs to be addressed.
Residents also voiced their opinion about taking water conservation into account in the rates.
“I would certainly be interested in asking that staff develop an alternative rate proposal that are responsive to the public input we’ve received, including an alternative that places greater emphasis on water conservation as a stated policy objective,” said Mayor Andrew Friedberg during the city council meeting.
Council member David Montague, calling back to the what residents mentioned during the townhouse meeting said if, “we take the whole rate increase at once or what might one do in a stepwise fashion that still accomplishes the overall objective.”
Mayor Pro Tem Roman Reed agreed with those residents who spoke out about the rate hike and proposed a three-year phasing approach to raise the rates.
Reed, however, would later change his mind on that proposal after Bellaire City Manager Paul Hoffman noted that it could mean a dip into the city’s 60 day fund balance from the Enterprise Fund.
“I don’t want to dip into that, because you dip into that, all you’re doing is kicking this further down,” said Reed.
Reed added that he agreed with council member Michael Fife, who had said earlier in the meeting that the city should educate the public on the water rates.
Hoffman also addressed the issues concerning a possible comprehensive plan to fix the city’s water system, and what needs to be done.
“What we’re assuming is $11 million, over this five year period, in critical water line replacements,” said Hoffman. “Frankly, that $11 million represents a drop in the bucket. That is the most critical or critical water lines replacement needs.”
Hoffman added that the $11 million takes care of three year’s worth of the most critical water lines that need to be replaced.
Reed also brought up concerns about the huge jump in some of the city’s water base rates, pictured below.
“The preponderance of the rate increase is on the base rate, there’s no doubt about that,” said Hoffman. “And that is reflective of the fact that about 90 percent of our utilities expenses are fixed and aren’t tied to volume.”
The city manager noted that customer’s water usage has very little impact on the city’s expenditure needs and added that Bellaire’s contract with Houston aids in that regard.
“About $2 million of our total expenses are related to our contract with the city of Houston for surface water. We do have a limited ability to manage how much water we buy from Houston,” said Hoffman. “Essentially, that’s a contract that is a fixed cost to the city of Bellaire.”
Discussion about the water rates is far from over. Hoffman and city staff will take into consideration the notes from council and implement them before presenting the proposed rates once again.
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