The Board decided to raise your water bill to a minimum rate of $55 in a 4-1 vote. I was the one that voted 'NO'. The rate order will be executed at the next meeting on October 16, and the 2012 tax rate will be discussed as well. If you care at all about how the finances are handled, this would be the meeting for you to attend and have your voice heard!
Our current water rates are based on a 3 tier system. You get 5000 gallons of water each month for $19.10 and sewer services for $32.45 making the minimum monthly bill $51.55 - if you use more than 5000 gallons of water in the month you pay more. (For 10,000 gallons your minimum bill is $60.80 and for 20,000 gallons it is $87.89) Our current budget is balanced at this $51.55 minimum rate. So why did the Board vote to raise it?
A man, contracted by our governing authority at the state level (TCEQ) did a rate analysis of our district and stated that “every water utility must receive sufficient revenue
to ensure proper operation & maintenance (O&M), capital improvements,
and preservation of the utility’s financial integrity.”
His recommendation was to increase our water rate to a minimum of $63 to cover both capital improvements and equipment depreciation. The Board opted to include capital improvements, but leave the equipment depreciation out of the equation, thus arriving at the $55 figure. Sharyn Smalls argued that it was necessary to increase the rates in order to create a reserve of funds for repairs and upkeep of the District's older infrastructure. Well, the District has a brand spanking new sewage treatment plant, paid for out of bonds. It also has a 2nd water plant which will become operational soon in Brunswick Meadows - also paid for out of bonds. The only facility that might need any expensive repairs is the original water plant in Morningside and the pipes servicing that neighborhood.
Isn't it interesting that she is willing to raise everyone's water bill when it benefits Morningside, but states emphatically that taxes shall NOT be raised, which is necessary to pay off our debt for the two capital improvements I mention above AND repaying the developers for the Brunswick Meadows and Brunswick Lakes neighborhoods? Bonds were also used to fund the Administration Building. You know how well that was handled!
Speaking of the Administration Building, another check was issued to Moseley Architect for $15,944.50 in order to redesign the building since all the bids came in way over budget. That makes the total spent on the building $222,990 with $75,039 of that amount paid to Mr. Moseley. Sorry, but I have a very hard time trusting anyone who has squandered that much money to make a 'reserve' fund for the future.
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Can you explain why users of lots of water are subsidizing households that use very little water?
ReplyDeleteFor example, I used to use about 1,000 gallons per month when I lived in the Heights. It used to be about $8 total for water and sewer but I see this year it's up to $13.84: http://documents.publicworks.houstontx.gov/documents/divisions/resource/ucs/2012_water_rates.pdf
So that's $14 in a non-MUD for 1,000 gallons but it's $51.50 (soon to be $55) here. That's a difference of $492/year I'd be overpaying here!
For 20,000 gallons it's $216 in non-MUDs but it's only $88 here.
This makes no sense to me. There is no incentive at all to conserve water. In fact, this pricing structure encourages people to use more water "to get their money's worth". There is very little extra cost to install a sprinkler system, fill a pool, supply a water feature, etc. In fact, this cost structure made me realize we could afford a sprinkler system so we installed one.
Also, when I lived in the heights our HOA had a sprinkler system hooked up to a separate meter that did not have a sewer charge. Is that an option here? 20,000 gallons without sewer in a non-MUD is about $87, much less than the $216 with sewer included.
Thanks,
Chris
These are all excellent questions. Our rate order has the minimum set to include 5000 gallons. At 5001-10,000 gallons you pay an additional $1.25 per gallon. At 10,001 gallons on up you pay an additional $1.50 per gallon. It was also recommended that we have an additional tier for 20,000 gallons of $2.50 per 1000 gallons beyond that amount (20,001 & up). This is designed to encourage conservation of water. The separate meter is not an option here.
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