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Council freezes billing approach for water-intensive businesses pending rate study
Summary
The council unanimously approved Resolution 2026-27 to temporarily bill water-intensive businesses (laundromats, car washes, nurseries) at earlier 2023 rates until a third-party rate study completes, to avoid punitive spikes in charges.
The Portales City Council voted unanimously to adopt Resolution 2026-27, a temporary measure to treat businesses that use water as a core product differently while the city completes a third-party rate review.
City staff said the city’s 2023 rate structure included residential, commercial and industrial classes and that some businesses—such as laundromats and car washes—were not adequately accounted for and now face steep tiered increases because they exceed the household-average volume used to set rates. The proposed resolution allows the city to freeze rates for qualifying businesses at prior levels until a full rate study identifies an appropriate billing category.
Staff noted the intent is to avoid forcing water-dependent small businesses into an industrial or punitive tier that could make them financially unviable. Councilors asked for examples and clarification of which businesses qualify; staff said laundromats, car washes and nurseries are the primary categories under consideration. After discussion, the council approved the resolution on a unanimous roll call.
The measure will remain temporary while the third-party rate-review contractor completes its work and presents recommendations to the council.
