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November bills reflect City of Palestine utility rate changes

PALESTINE, November 8, 2013— The City of Palestine announced that effective October 1, 2013, there will be changes to the city utility rates. These changes will be seen on bills mailed out beginning on November 12, with due dates of December 1, and later.

"Over the last several years, the City has worked to keep utility rates as low as possible. We had reached the point where the cost of providing those services was going to exceed revenue generated in this budget year by a significant amount, and the Council found themselves having to make a tough decision," stated City Manager Wendy Ellis. “They worked diligently to minimize the impact as much as they could and still generate enough revenue to cover operating expenses and begin funding necessary capital improvements that have long been in need of repair."

The ¾” meter charge will be reduced to $6.00 for residential customers inside the city limits and to $7.50 for residential customers outside the city limits. ¾” meters for sprinklers will remain at $9.00 for customers inside the city limits and $11.25 for customers outside the city limits.

The changes will affect minimum usage calculations for water, the price per thousand gallons, sewer surcharge, and solid waste rates. Sewer usage rates were not changed, but the sewer surcharge which is used to pay debt service for on-going capital improvements to the system and is based on per thousand gallon usage was increased to fully cover the existing debt.

Minimum usage has dropped from 3,000 gallons to 2,000 gallons on all accounts.

Residential base rate for water for 2,000 gallons is now $6.00 and $3.52 per thousand gallons up to 20,000 gallons. Residential customers using more than 20,000 gallons will now pay $4.31 per thousand gallons.

Commercial base rate for water for 2,000 gallons is now $6.00 and $3.76 per thousand over the minimum up to 20,000 gallons. Commercial customers will now pay $4.49 for all gallons per thousand more than 20,000.

Residential base rate for sewer surcharge for 2,000 gallons is now $8.92 and $2.00 per thousand over the minimum. Commercial base rate for sewer surcharge for 2,000 gallons is $6.75 and $2.00 per thousand over the minimum.

Solid Waste will increase to $18.32 for each residential customer and $38.83 for each commercial customer. This new rate reflects an increase imposed by the city contractor, Progressive Waste Management, and operational expenses for the city. All residential and commercial customers outside the city limits will be charged at a rate that is 1.25 times the rates set for residential and commercial customers inside the city limits.

A basic example of how the rate changes will affect a household within the city limits that uses the minimum of 2,000 gallons is a $2.10 increase in the bill:

 

 

Residential

Monthly

Old Rates

New Rates

Consumption

3,000

2,000

 

 

 

 

 

 

Meter Charge

9.00

6.00

Water

  

Sewer

8.30

8.30

Sewer Surcharge

7.80

8.92

Street Sanitation

1.75

2.10

Solid Waste

14.97

18.32

Sales Tax

1.24

1.51

Total

43.06

45.15

 

 

Difference  - $2.10

 

Example of affect to average household in the city limits that uses 5,500 gallons is a $13.22 increase in the bill:

 

 

Residential

Monthly

Old Rates

New Rates

Consumption

5,500

5,500

 

 

 

 

 

 

Meter Charge

9.00

6.00

Water

6.00

10.56

Sewer

18.18

22.13

Sewer Surcharge

12.18

15.92

Street Sanitation

1.75

2.10

Solid Waste

14.97

18.32

Sales Tax

1.24

1.51

Total

63.32

76.54

  

 

Difference  - #13.22

 

 

 

A basic example of how the rate changes will affect a business within the city limits that uses the minimum of 2,000 gallons is a $5.90 increase in the bill:

 

 

Commercial

Monthly

Old Rates

New Rates

Consumption

3,000

2,000

 

 

 

 

 

 

Meter Charge

9.00

6.00

Water

  

Sewer

33.00

33.00

Sewer Surcharge

5.90

6.75

Street Sanitation

1.75

2.10

Solid Waste

31.72

38.83

Sales Tax

2.62

3.20

Total

83.99

89.88

  

 

Difference  - $5.90

 

 

 

For more information on rates, please contact the Customer Service Department at 903-731-8400.

© 2017 Tomlinson-Leis Communications L.P.