KINGWOOD — A proposed rate increase was the main topic of discussion at Tuesday’s Kingwood Water Board meeting.
The proposed amount of the increase started at 10.5% and quickly rose to 15% and could possibly go higher.
Tim Rice of Potesta Engineering said his company had a formula the board could use to determine rate hikes.
“We can help with the rate increase,” he said. “I suggest you sit down with Kingwood Water Works and [the city’s] accountant and try to find a number. We can’t just look at it and say you need to raise it $10. Once we have the meeting we can do this fairly quickly.”
He said if the board is looking for grants to do system improvements, water rates are one of the items that would be considered.
“We don’t want to have the rate too high,” Board Member Bill Robertson said.
Instead of one rate increase, “We could do 10%, and next year 3% and the next year another 3%,” water clerk Amy DeBerry offered.
According to the City of Kingwood the current minimum water rates per month are 5/8-inch meter or less, $21.66; 3/4-inch meter, $32.49; one-inch meter, $54.15, 1 1/2-inch meter, $108.30, two-inch meter, $173.28, three-inch meter, $346.56, four-inch meter, $541.50, six-inch meter, $1,083, and eight-inch meter, $1,732.80.
For customers with metered water supplies, the first 5,000 gallons is $10.83 per 1,000 gallons, the next 35,000 gallons is $7.83 per 1,000 gallons, and all amounts over 40,000 gallons are $6.96 per 1,000 gallons.
Current rates for Public Service District 2 customers are 5/8-inch meter or less, $24 per month; 3/4 inch-meter, $36 per month; one-inch meter, $60 per month; 1 1/2 inch meter, $120 per month; and two- inch meter, $192 month.
For customers with metered water supplies the first 3,000 gallons is $12 per 1,000 gallons, the next 3,000 gallons is $11.59 per 1,000 gallons, the next 4,000 gallons is $11.18 per 1,000 gallons, the next 10,000 gallons is $10.63 per 1,000 gallons, and all amounts over 20,000 gallons is $10.09 per 1,000 gallons.
Board members instructed DeBerry and Rice use Potesta’s formula to see how much the rate hike should be.
If it is not above 15% DeBerry can go ahead with the paperwork.
If it is above 15% it will be discussed until the next meeting.
The city has not raised water rates in seven rates.
In other business, Rice said the Herring Road water extension is lacking only a Division of Highways permit.
“The ball is in their court,” he said. “We can bid this fall and go to construction in the spring.”
No further action was taken.
Board members voted to go into executive session to discuss personnel.
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