Cedar Park water rates go up by usage to promote conservation

Cedar Park water rates go up by usage to promote conservation

Written by Kara Vaught Friday, 07 December 2007

Water rates for those serviced by the City of Cedar Park will be calculated based on usage beginning in January.

Sam Roberts, assistant city manager, described the system as a three-tiered rate structure designed to promote conservation.

“The rate you pay for water is a function of how much you use,” he said. “The goal is not only to encourage people to use less water, but it is also to reduce the peak amount of water that they use. This allows your infrastructure to last longer before it needs to be expanded because water treatment plants are planned for your peak day.”

The city, in partnership with Leander and Round Rock, is building a $330 million regional water system including a deep-water intake in Lake Travis, treatment plant and the accompanying raw and treated water pipelines. The increase in water rates will help pay for Cedar Park’s portion of the cost. In July, regional water system partner city Leander raised its water rates by six percent to $3.82 per 1,000 gallons for both residential and commercial customers.

The increases in Cedar Park are intended to generate roughly $90 million dollars over the next six years to pay for new and expanded facilities, Roberts said.

In a presentation to the city council, he and Kenneth Wheeler, assistant utility director, recommended phasing in the rate increase over three years, but the council approved only one increase. Another will be needed in two years, Roberts said.

Customers who use less than 2,000 gallons a month will see no increase in their water bills. Those who use the system-wide average of 9,400 a month will pay $6.02 more per month.

Residential rates will be calculated based on the following:

• Usage of 2,001 – 10,000 gallons will cost $3.21 per 1,000 gallons.
• Usage of 10,001 – 15,000 gallons will cost $3.85 per 1,000 gallons.

• Usage of more than 15,000 gallons will cost $4.62 per 1,000 gallons.

Commercial customers rates will increase by 8.5 percent per month regardless of usage.

The citys studies show about 15 percent of residential water customers use more than 15,000 gallons a month.

“What that says is a small percentage of the water customers use a large percentage of the water,” Roberts said. “That begs for an incentive to conserve water.”