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Alpine council weighs smart meters and phased rate increases as utilities staff report high water loss
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Summary
Staff reported dozens of unmetered or inaccurate meters and preliminary water-loss calculations that could mean hundreds of thousands in lost revenue. Council discussed smart-meter investments, phased rate increases, and prioritizing utility capital spending to reduce dependence on the general fund.
Council members and utility staff spent a substantial portion of the April 15 meeting on water finances, potential rate adjustments and a push to replace or upgrade meters.
Consultants' water-rate work updated in 2025 recommended the city consider rate adjustments to avoid future deficits; the study noted the city may need to generate roughly $2.9 million in additional utility revenue to avoid a projected shortfall. Utility staff told the council they have identified at least 54 unmetered accounts and that the initial revenue-loss estimates are still being refined but could reach into the hundreds of thousands.
"We do have evidence of unaccounted for, unmetered water usage," an assistant utilities director said, and staff reported the water-loss audit and the Texas Water Development Board reporting are being completed in tandem with grant deadlines. The water-loss audit and the water-use survey are required for grant applications due July 30; staff warned there are no waivers for missed submittals.
Council debated whether to pursue smart meters now (cash purchase) or wait for a grant (which could take a year or more). Several councilmembers argued water-meter replacement and leak detection should be a near-term priority because accurate metering improves revenue capture and reduces billing disputes.
Stevens and others recommended incremental, predictable rate increases rather than a single large hike, to build reserves and reduce future borrowing. Staff said some enterprise funds currently show a positive balance but that capital needs for water/wastewater (which dominate the CIP) will require careful timing of grants, cash spending and possible financing.
Next steps: utility staff will finalize water-loss numbers and submit required grant-related reports, and the council scheduled follow-up budget and utility-rate discussions (including a proposed October workshop on accounting software and mid-term finance planning).
