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Boerne staff previews three‑tier gas rate proposal; council schedules ordinance readings for June
Summary
City staff presented a gas rate study recommending a three‑tier residential and commercial structure to fund about $9.3 million in gas infrastructure needs over five years; staff proposed ordinance readings in June and estimated a modest average increase for small residential customers (about $9/month) to set up tiers.
City finance and utility staff on May 12 presented a gas rate study and proposed changes to the gas utility’s rate structure intended to fund approximately $9.3 million in capital needs over the next five years and to more equitably allocate costs among customer classes.
Sarah Buckley (speaker 10) said the last comprehensive rate study was in 2014 and the city’s system has grown and requires upgrades and additional operational support. She told council that new appliance technology (notably tankless water heaters) creates short, high‑demand bursts that drive capacity needs and that the planned capital improvements and potential debt issuances require changes to the rate design.
Buckley recommended moving from a single tier to a three‑tier structure for residential and for commercial customers so that small residential customers — the majority — would see the smallest impact while medium and large customers would bear a larger share of infrastructure costs. She said the small residential tier’s average bill impact would be roughly $9 per month as a one‑time differential to set up the tiers and that a billing system change would take about two months to implement. The staff timeline calls for a first reading of a gas‑rate ordinance on June 9 and a second reading June 23, with new rates possibly effective as early as Aug. 1 (consumption billed in September).
Council members asked about average current bills (staff said most residential customers average about $50/month) and noted assistance exists through a local Good Neighbors Fund administered by Hill Country Family Services for customers needing help. Council also discussed fairness across customer classes and the technical challenges of billing changes; staff said customer communications and a transition period would be part of implementation.
Next steps: staff will refine the ordinance language and return for formal readings in June, while working with customer service and communications teams on outreach and with the billing vendor on system setup.
