Boerne council adopts new gas-rate structure, creating three tiers

Boerne City Council voted 5–0 June 23 to adopt an ordinance that revises the city’s gas-rate classifications and replaces a prior ordinance dated Feb. 28, 2023.

City staff said the change follows a rate study conducted with Schneider Engineering (referred to in the meeting as Synergy) and is intended to develop “a financial plan that supports the long term sustainability of our small gas utility system.” The study recommended creating three tiers for both residential and commercial customers based on meter capacity, along with updates to base and volumetric charges to align bills with system demand.

Sarah, the staff presenter, told the council the small-residential tier contains the bulk of customers and that the study’s implementation is intended to spread demand in alignment with bills. She said that, for the smallest residential customers, the plan would be “a one-time increase” and staff did not forecast another rate increase for that group during the next three years.

The motion adopted the ordinance identified in the agenda as 2026-03 and repealed ordinance 2023-07 dated 02/28/2023. The council approved the item by unanimous vote.

The change will alter bill impacts across customer classes; staff said it aims to align charges with meter capacity and system demand while maintaining the utility’s long-term financial stability. The staff presentation noted the last comprehensive rate study was conducted in 2014 and that periodic reviews are standard for small utilities.

What’s next: Staff will implement the new rate structure and update customer communications. The ordinance was adopted during the June 23 meeting and the council did not discuss a separate phased implementation schedule at that time.