Powerpoint Water Surcharge Fee Amendment

1. ADMINISTRATION
Presented by:
Phil Laney
Assistant City Manager
CHAPTER 19 – WATER & SEWER AMENDMENT FOR
WATER RESTRICTIONS
ITEM # 7
DECEMBER 11, 2023

2. SUMMARY
 Update on Council & Council Committee
feedback for water restriction strategies
provided at August & September meetings
 Establish groundwater use surcharge fees
 Raise qualifying threshold to roughly top 25% of
users for each account type (except irrigation)

3. BACKGROUND
 Since 2011, 2023 had highest consumption from
January to October (1.3% higher than 2022)
 August 2023 highest usage month
 2023 pumping projections 2,100 to 2,200 AF, or
16% to 22% more than allotment
 Revised Edward Aquifer Authority (EAA) allotment of
1,811 AF
 Per conversations with EAA, fines possible, but may
be able to lease additional water as alternative

4. GROUNDWATER USE REDUCTION STRATEGIES
 Incorporate Stage 5 into Code – adopted Sept. 11, 2023
 Stricter enforcement for water violations – currently in
ordinance & implemented
 2 warnings & citation on 3rd or more violation(s)
 Revise groundwater use surcharge fee’s threshold &
recalculate – submitted for consideration
 Threshold unique to each account type (Residential,
Commercial/Multi-Family, etc.) & reflects average monthly
use of top 25% of users

5. GROUNDWATER SURCHARGE FEE – OPTION 5
 Groundwater use surcharge fees applied to every 100 cf of water
consumed above the account type threshold
Monthly Groundwater Use Surcharge Fees Above Consumption Threshold
Account Type Consumption in
Cubic Feet (cf)
Stage 1 Stage 2 Stage 3 Stage 4 Stage 5
Residential 2,500 or more $0.25 $0.50 $1.25 $2.00 $3.00
Commercial &
Multi-Family
3,500 or more $0.25 $0.50 $1.25 $2.00 $3.00
Institutional 10,000 or more $0.25 $0.50 $1.25 $2.00 $3.00
Irrigation 1,000 or more $0.25 $0.50 $1.25 $2.00 $3.00

6. GROUNDWATER SURCHARGE FEE – OPTION 5
Sample Groundwater Surcharge Fees for Customers using More Than Threshold
Customer/Location & Consumption Stage 1 Stage 3 Stage 5
Residential – 5,000 cf (2,500 threshold) $6 $31 $75
Commercial/MF – 10,000 cf (3,500
threshold)
$16 $81 $195
Institutional – 30,000 cf (10,000 threshold) $50 $250 $600
Irrigation – 5,000 cf (1,000 threshold) $23 $113 $270
 Proposed fees applied to every 100 cf of water consumed above the account type threshold
 Without change, average annual fee per residential user $360 to $600 & $1,600 to $2,600
for commercial/multi-family users

7. SURCHARGE FEE USE
 Without change, total annual revenue projected to
be $375K in Stage 3 & $600K in Stage 4
 Collected fees deposited in Utility Fund
 Funds may be used for
 Fines or penalties for over-consumption of city allotment
 Additional water rights
 Drought management & water conservation measures
 Other water-related purposes

8. COORDINATION
 Staff report & previous proposal presented to City
Council meetings in August & September
 Council Committee (Councilmembers Bonner & Baker)
 City Attorney & City Manager
 If groundwater surcharge fee adopted –
 Public notification in newspaper, 2x
 Customers notified on next water & sewer bill
 Fee implemented on following billing cycle
 Assessed on February usage, appears on March bill

9. FISCAL IMPACT
 No fiscal impact to expenditures
 Revenues from groundwater use surcharge fees to
be deposited in Utility Fund
 Use of surcharge fee proceeds to be authorized by
Council, when appropriate