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Council approves amendment to Greenville water agreement and moves to phase customer rate increases
Summary
Caddo Mills approved a resolution to amend its water sales agreement with the City of Greenville to preserve access to greater supplies when available and approved an ordinance to reflect higher wholesale rates; staff said wholesale cost would rise to $5.96 and recommended phasing customer rate increases to avoid a single large bill.
City Engineer Eddy Daniel described two linked items: an amendment to the wholesale water sales agreement with the City of Greenville and an ordinance to adjust the city's water rates to reflect higher wholesale costs. Daniel said that under TCEQ rules "all the water that they could give us legally is 600 gallons per minute" but the draft agreement includes a stipulation that Greenville would provide up to 2,500 gallons per minute "when it was available," and lists a schedule of system improvements intended to expand capacity.
On rates, Daniel told the Council the new wholesale price cited in the minutes is $5.96 per wholesale unit and presented two models for passing the increase to retail customers. City Manager Matt McMahan said he preferred phasing the change: raise rates in January, "get through the summer and do another rate increase in October," rather than imposing the full increase at once. Council approved the water-sales amendment resolution and the ordinance amending Chapter 13 to reflect increased wholesale water costs, both by unanimous vote. The minutes record staff follow-up and final review by the City Manager and City Attorney prior to final execution.
