Everman staff proposes 5% water-rate increase; council asks staff to draft ordinance

City staff told the Everman City Council on July 22 that it plans to propose a 5% increase to water rates and will draft an ordinance to amend the city’s fees for a future meeting. The staff presentation said the suggested change would raise the water base rate and step charges while leaving sewer rates unchanged. The proposal aims to ensure the water enterprise fund covers the full cost of providing service, rebuild a three-month operating reserve and fund capital improvements so the city does not rely on the general fund or take new debt. Staff told the council the water fund’s unrestricted balance is about $700,000 and the fiscal 2024 water and wastewater budget is about $3.1 million. Staff said Everman has roughly 2,186 water accounts, about 1,600 of which are residential; 317 accounts are designated as senior-citizen accounts and under 200 are commercial. The presenter recounted the city’s prior large adjustment in 2021 (a $14.45 monthly increase for most residential customers) and a smaller adjustment last year (a 5% water-only increase that averaged about $1.34 per month). The staff presentation used the Texas Municipal League survey to compare Everman’s water and sewer charges with peer cities and reported that a 5% water increase would move a 5,000-gallon-per-month customer’s combined water-and-sewer bill from $87.24 to about $89.52 per month. Staff estimated the average residential customer would see about a $2.28 monthly increase (about $27.36 annually) but clarified that exact impacts depend on meter size and usage. The presenter said there would be no sewer increase this year because Everman’s sewer charge remains above the statewide average. The presenter also told council that the staff-calculated annual revenue impact was spoken as “about 60, 70000 dollars a year” in the meeting and that amount was not clearly stated in the transcript; staff will provide a precise revenue estimate in the ordinance package. Council discussion focused on clarifying who is affected (inside vs. outside city limits and senior discounts) and on next steps. One councilmember asked whether customers outside city limits or commercial customers would be affected; staff said most customers outside the city are residential and that commercial accounts outside the city are not expected. The presenter said staff will prepare a draft ordinance amending the fee schedule and bring it back at a future meeting unless council requests changes. The council did not vote on an ordinance at the July 22 meeting; staff were directed to prepare the ordinance and return it for formal consideration.