La Marque council tables proposed water, sewer rate hikes and impact-fee changes after heated public hearing
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Summary
After a lengthy public hearing, the La Marque City Council voted Nov. 10 to table proposed water and sewer rate increases and related impact-fee changes to December so staff can reconcile accounts and obtain any required independent audit.
After more than an hour of public testimony and council debate, the La Marque City Council on Nov. 10 voted to table proposed water and sewer rate increases and related impact-fee changes until December to allow staff to reconcile city accounts and pursue an independent audit.
Residents asked the council not to implement a single, immediate jump in bills they said could reach triple-digit increases. "I don't support doubling people's water bills overnight," said James Ross (SEG 867SEG 886), who presented a five-year phase-in alternative and advocated for a temporary monthly charge as a bridge. Other speakers described the impact on families living on fixed or thin budgets.
City finance staff and council members said the proposals responded to an operating shortfall in the utility fund. Finance staff reported a rough current-year utility loss in the range of $700,000 and said administrative accounting shows a high degree of cash pooling that makes a precise, cash-side breakout of impact-fee balances difficult without a reconciliation (SEG 1586SEG 1660; SEG 2340SEG 2343). Council heard that an audited impact-fee balance exists for fiscal year 2024 but staff said fiscal year 2025 must be reconciled before any fee action is finalized.
Councilmembers also discussed recent state-law changes requiring an independent audit before increasing or adopting impact fees; Mayor Pro Tem said staff should obtain an interpretation from the city attorney to confirm the legal path forward (SEG 1372SEG 1398). Several councilmembers told staff to return with clearer, reconciled numbers and options for a multi-year, phased approach to rate changes.
Deliberations emphasized data presented by staff: the city has roughly 7,662 accounts, and finance noted that during JulyAugust a cohort of 1,245 accounts used 15,000 gallons over that two-month stretch (about 7,500 gallons per month) — a usage pattern the city described as driving much of the high-end billing in the proposed structure (SEG 1986SEG 2014). Staff also said some of the increases are driven by external cost drivers, including Gulf Coast Water Authority rate changes and new water-quality requirements that have raised wholesale costs for member cities (SEG 2409SEG 2423).
Motion and next steps: Councilmember Yancey moved to table the ordinance and direct staff to produce a reconciled accounting, seek an independent audit where required by statute, and return with revised options in December (motion passed by voice vote) (SEG 2550SEG 2571). The council retained the option to hold a special meeting sooner if staff finds a way to reduce ongoing cash losses.
What council asked for next: a confirmation from the city attorney regarding the independent-auditor requirement for impact-fee changes; a fiscal reconciliation covering FY2024FY2025; clearer breakouts of any transfers between utility and general funds; and proposals for a phased increase alternative with an implementation timeline.
Votes at a glance: the motion to table the rate/impact-fee ordinance to December passed on a voice vote; no formal roll-call tally was read into the record.
