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Llano council raises bulk water rate to 3¢ per gallon after debate over cost recovery
Summary
Council approved a change to the master fee schedule increasing the bulk water rate to 3¢ per gallon after staff presented cost figures and business owners raised equity concerns.
The Llano City Council approved an amendment to the master fee schedule to raise the bulk water rate to 3¢ per gallon following a discussion that included staff cost figures and public comment from local business owners.
Staff materials in the packet and remarks at the meeting noted that the city had been charging $20 per 1,000 gallons and that operational cost figures previously cited in public discussion were $4.78 per 1,000 gallons. City staff compared neighboring communities' pricing: Marble Falls was cited as charging roughly $5.14 per 1,000 gallons.
During public comment, a local contractor warned that increasing the per-gallon charge would raise job costs; another commenter argued the city was underpricing bulk water relative to production cost and municipal policy. The motion to increase the bulk water rate to 3¢ per gallon was made by speaker 3 and seconded by speaker 10 and passed on a voice vote.
City staff said the change would improve cost recovery and that smaller adjustments (an additional penny or similar) could be considered to increase revenue modestly in future budget cycles. The council did not change the commercial rate at the meeting.
The council recorded the vote as carried and directed staff to update the fee schedule accordingly. The ordinance or fee amendment language will be brought forward for formal adoption/arriage to administrative process as required by staff and the city clerk.
(Quotes in this article are drawn from the council meeting record.)
