Groves leaders consider changes to water rates – Port Arthur News

GROVES — Groves leaders are looking to accomplish something other cities have yet to do: create a way for their water and sewer funds to build reserves to tackle capital improvements and to build up cash reserves.

Matthew Garrett, project manager at NewGen Strategies & Solutions, presented the results of a water and wastewater rate study to council on Monday, giving them options well ahead of budget planning season.

Garrett explained that the goal of the study is to design a rate plan to address rising costs over five years, fund more than $20 million in capital improvements, build cash reserves of up to $180 days of operating costs over five years and introduce a progressive water tariff to promote water conservation.

The plan incorporates inflation, wage increases and the fact that the Lower Neches Valley Authority, where the city buys water, periodically raises its rates.

The plan would use a different set of units. For example, the volumetric fee for 1,001 to 5,000 gallons is currently $3.70. By 2025, this amount would increase to $4.81, and by 2026, to $5.60. By 2029, that figure would be $7.05.

The more volume a customer uses, the more the bill will increase.

NewGen has incorporated a 25% rate increase between successive tiers.

The impact of the bill would be varied. Considering only water and wastewater (excluding waste), a minimum bill of $51.40 would increase to $64.93 in 2025, $75.51 in 2026, $88.02 in 2027, 91.35 $ in 2028 and $94.77 in 2029. These figures are for a customer using 4,000 gallons.

Residential and commercial customers using 10,000 gallons would see an increase from $103.60 in 2024 to $138.79 in 2025. This figure increases through 2029 with an increase of $203.11.

The question of whether large water customers would reduce their consumption due to their rising bills has been raised and this could happen. But then again, among residential users, few would be willing to reduce the number of baths and toilet flushes.

No decisions were made at Monday’s meeting.