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Pryor Creek council approves 5-cent-per-1,000-gallon water pass-through from OWA
Summary
The Pryor Creek City Council voted to pass a 5-cent increase per 1,000 gallons through to customers after the water authority (OWA) notified the city of higher wholesale charges; councilors debated the burden on residents and the limits of municipal authority over the municipal utility board.
The Pryor Creek City Council voted to pass a 5-cent per 1,000-gallon increase through to retail customers — from $5.22 to $5.27 per 1,000 gallons — effective on the March 2025 billing cycle, councilors approved during the meeting.
City utility staff said the adjustment is a straight pass-through of a wholesale rise announced by the OWA. “Their two-and-a-half-percent increase to us equates to a one-percent increase to our customer,” a city utility representative said, noting the city purchased 479,651 units (1,000-gallon units) in the last fiscal year and estimating the cumulative impact if OWA’s increases continue.
The passage prompted debate over the fairness of shifting increases directly to customers and the limits of council authority over MUB (the municipal utility board). Councilor Trammell and others pressed for greater transparency about MUB budgets and for the board to consider mitigation steps; Councilor Lamar urged the MUB board and staff to examine options to reduce impacts on low-income residents. The council also asked MUB leadership to report back to the board and stated it would take the concerns to the MUB board for consideration.
MUB representatives told the council OWA intends to review wholesale rates twice a year for at least the next two years. The city emphasised the change was not a discretionary city markup but a pass-through tied to the OWA adjustment. The city manager/utility staff also described efforts already underway to look for ways to reduce overall costs to end users, such as examining trash contract riders and other line items that could be adjusted.
Councilors voted to approve the pass-through. The council also asked MUB leadership to present options to mitigate the effect on customers — particularly those who are struggling to pay bills — and to report back at a later meeting.
The council recorded the vote and approved the pass-through; staff said the increase would add about $0.25 to an average 5,000-gallon household bill when the full series of scheduled OWA adjustments were applied.
What’s next: MUB leadership will present more detailed mitigation options to the council and to the MUB board; the council directed staff to return with that discussion in a future meeting.
