Canyon adopts updated fee schedule; city raises some utility and recreation fees and adds same-day inspection priority fee

The Canyon City Commission adopted Ordinance No. 12-30 on July 1, revising the city's fees and charges across parks and recreation, planning and development, utilities and other departments.

Key changes: The ordinance increases some Canyon Aqua Park and golf-course fees (golf cart and green fees), limits future golf fee increases for several years and adds new charges under planning and development for work without required inspections. City staff reduced a proposed "same-day inspection" fee from $150 to a $75 "same-day inspection priority fee," which is charged in addition to whatever permit fees already apply and is intended to guarantee a priority inspection the next business day.

Utility rates: The ordinance implements parts of a five-year rate schedule derived from a NewGen rate study tied to the city's water and sewer debt requirements. Minimum monthly water fees for larger meters will rise over the five-year schedule (for example, a 30% increase for 1-inch meters and much larger percentage increases for larger meters). The volumetric water tiers for most residential usage under 20,000 gallons did not change for the five-year period; higher tiers above that level are phased to increase about 10% over five years (approximately 2% annually). Education accounts and commercial sewer minimums were simplified to a single minimum and single volumetric rate; staff clarified a copy-paste error in the packet for education volumetric rates.

Wholesale water concerns: During discussion commissioners and staff reviewed the portion of City water that is purchased from Amarillo at wholesale rates. A staff figure cited in the meeting showed wholesale purchases averaging roughly 1.5 million gallons per year historically and more recently lower, and a wholesale price referenced in the discussion of about $6.23 per 1,000 gallons. Several commissioners questioned the economics of buying supplemental water at retail-level prices while selling retail water to customers at lower rates; staff said the rate study considered overall system production and purchase costs.

Implementation dates: Most fee changes go into effect Oct. 1; golf-course fee changes take effect Jan. 1.

Vote and next steps: The commission approved the ordinance by a 3-2 vote. Staff will finalize updates to customer billing and publish the new schedule and notify affected account holders. City staff said they would supply commissioners with an analysis of Amarillo's wholesale rate history when requested.

Ending: The adopted fee schedule is intended to align utility revenues with debt service obligations and operational needs while adding customer-service options through the same-day inspection priority fee.