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Llano council debates water-rate scenarios, funding and use of interest earnings under proposed master-fee change
Summary
At a Llano City Council meeting, staff presented proposed changes to the master fee schedule and multiple water-rate scenarios (including "scenario 6a"), prompting extended debate over deficits, capital planning and whether to use interest earnings to service debt; no final rate vote was taken.
City manager Finley briefed the Llano City Council on a proposed resolution (R2026-07) to amend the master fee schedule and walked council through several water-rate scenarios, including a staff-recommended "scenario 6a." Finley said the base charge for city customers had been reduced in the proposal and that scenario 6a would yield about $2,355,000 in revenue, though council members warned that the utility would still face deficits under some options.
Why it matters: Council must balance keeping water affordable for low-tier customers with the utility's legal obligation to cover debt service and operations. Council members repeatedly pressed staff for clearer figures on total revenue, total expenses…
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