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Port Arthur council adopts short-term water rate increase, applies larger hike to commercial customers
Summary
After hours of debate about utility finances and impacts on residents, the Port Arthur City Council approved a six-month rate amendment that raises residential rates by 5.6% and commercial/industrial rates by 11.5%, intended to reduce an end-of-year deficit and limit transfers from the general fund.
Port Arthur — The Port Arthur City Council voted on Feb. 11 to approve a short-term adjustment to city water and sewer rates, adopting an amendment that applies a 5.6% increase for residential customers and an 11.5% increase for commercial and industrial accounts for the remainder of the current fiscal year.
Council members debated multiple options for rate changes during a lengthy discussion that focused on how to reduce a projected utility fund deficit without triggering a much larger jump for industry accounts alone. City staff presented revenue scenarios showing that residential accounts produce roughly $24 million in annual revenue while the largest single industrial customer—Cheniere—accounts for most of the industrial receipts. Staff said the city needs additional revenue in the coming six months to reduce the amount the general fund would otherwise have to cover.
The amendment approved by the council was offered after members rejected an initial set of proposals. In discussion, Councilman Doucette said…
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