New water rates have city officials in hot water

Last night in a crowded council chamber, homeowners let the Kennedale City Council know of their frustration with the new water rate increase that went into effect last month. They were not in the mood to let things go without someone knowing just how upset they were. {{more:[Read more]}}

Kennedale residents saw an average $35.00 increase (approximately 37% jump) due to rate increases approved in January by the Kennedale

City Council. The Council took the action after months of study and citizen input.

Why the increase and why so big?

Homeowners may have to think twice about watering

According to the City Council and city officials, the bottom line was that the water and sewer department could not do the work needed to be done without going in the hole (budget-wise) and draining the reserve fund. The present rates could not cover both the on-going and the long term maintenance required to keep the system flowing.

For those who have never studied their monthly water bill, the City had used a basic service fee plus a 3 tier system based on usage, the more you use the higher the rate charge was. Everyone pays the service fee which was set at $13.87. This fee is paid regardless of how much or how little is used.

 

Covering the cost of maintenance …

 

Theoretically, this base rate along with the sewer base charge fee should cover most of the cost of maintaining the system but it was really covering only 28% of the cost (see City Explanation) The rest was depended upon the ups and downs of water usage from season to season, from drought to flood, meaning there was no consistency in the income.

The city plans to divide the new revenue with approximately

30% going toward rebuilding the reserve fund and 70% for infrastructure cost

i.e. maintenance, repair and expansion.

The 3 tier water usage rate system was changed to a four tier with the goal of encouraging people to use water conservation methods at home. Kennedale is still on a well-water system but increasingly had to rely on water purchased from Fort Worth and are currently in talks with the City of Arlington about possible water purchase when usage is high and more water is needed.

 

Usage Rates caparison last year to this year

• 1st Tier: (0-5,000 gals) $2.79 per 1,000 gallons decreased to $2.00 per 1K per

• 2nd Tier: (5,001-50,000) $5.27 per 1,000 increased to $5.35 per for 5,001-20,000 gals

• 3rd Tier: (New tier for 2016) $6.19 per increase to $6.37 per for 20,001-50,000 gals

• 4th Tier: (50,001 up) $6.19 increase to $8.06 per

Why so big of an increase?

This is when it not fun being the ones who make the decisions. Would it have been better to spread the increase over several years but run the risk of .draining the reserve with possible emergency? Last year the reserves dropped to a low of just $11,000. Or is it better to do it now and start catching up with work that should have already been done knowing that you maybe just minutes from being run out of town on a rail or at least out of office?

 

If you were in office what would you have done. Send a comment.