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Beaumont staff recommends increasing LNVA water reservation to 8,500 acre‑feet to reduce drought costs
Summary
City staff told the council on Oct. 1 that increasing the city's LNVA reservation from 6,000 to 8,500 acre‑feet would raise annual reservation fees but lower the city's exposure to high excess release costs during drought years; council approved an updated five‑year agreement.
City staff presented modeling at the Oct. 1 Beaumont City Council meeting showing that increasing the city's reservation with the Lower Natchez Valley Authority (LNVA) from 6,000 acre‑feet to 8,500 acre‑feet would raise annual reservation payments but could reduce the city's exposure to large excess release fees during severe drought years.
"We have the ability to pull up to 50,000,000 gallons a day off of the river," the presenter said while explaining the LNVA agreement and the tradeoffs between reservation fees and excess release charges. Staff showed historical usage and drought years from 2010–2023, highlighting 2011 and 2023 as peak drought years that produced the highest costs under smaller reservation volumes.
Staff said the current reservation fee is $26.88 per acre‑foot, which equates to about $161,280 per year for a 6,000 acre‑foot reservation; increasing the reservation raises the guaranteed annual fee but reduces the city's expected excess release costs in severe drought scenarios. The council approved a resolution authorizing the city manager to execute an updated five‑year water supply agreement and mutual release with LNVA.
Council members asked technical questions about the modeling and drought assumptions; staff noted one chart label error (should show the 2010–2023 average) and explained that if a defect is discovered on a larger 54‑inch line during sewer work, additional contracting would be required.
What comes next: the city manager will execute the updated LNVA agreement and staff will monitor reservoir releases and billing under the new reservation level.
