Council decision on water rate increases on hold

By LYNETTE SOWELL
Cove Leader-Press 

After a back-and-forth discussion about water and sewer rates for Copperas Cove utility customers, the Copperas Cove city council came to a consensus on Tuesday night to hold off on any proposed rate increases as well as a decision on removing the winter averaging and water rate floor, until they can receive still more information from city staff. 
Councilman George Duncan also called for the city to get an opinion from the Texas Attorney General’s office on the legality of the senior citizen discount rate for utilities, which presently includes a 20 percent discount for all utility services for customers age 65 and over. 
“There are at least five other cities who offer a senior discount on utilities. I’m not saying we should do it because they do, but let’s at least hear from the attorney general.” Ryan Haverlah, the city budget director/deputy city manager, sitting in for city manager Andrea Gardner, said the city staff and attorney could definitely get that opinion. However, it’s not known how long receiving an opinion from the attorney general could take. 
Duncan said he was willing to discuss this at every meeting for the next six months if need be, if it meant the council could “get it right.”
Councilman Jay Manning gave his opinion on removing the winter averaging and rate floor from water and sewer volumetric calculations, stating that the move would adversely affect higher-volume water customers by increasing their bills, especially for customers who do not have separate water meters for their home sprinkler systems. Also, there is a cost for customers to add a meter to their sprinkler systems.
Yancey said he’d like to see a spreadsheet or document of all the possible options in one place, which includes the effects of the council’s previously recommended increases, with and without the winter averaging/rate floor, which the other council members agreed with. 
Receiving all this additional information will take time, however, and it’s not certain that all the information will be received before the September 5 meeting, when the agenda will include the council taking a vote on any increases to the city’s fee schedule.  
Councilman James Pierce Jr. was concerned about the council continuing to “keep kicking this can” where water rates are concerned. 
“If I want to save money, I reduce my usage. I’m not saying to keep the cost extremely high, and make a profit for the city…but if we do nothing, we’ll still be more and more in the red, for the city. Waiting a whole year isn’t going to work.” 
City budget director/deputy city manager Ryan Haverlah said that he was still working with the utility consultant Raftelis, which performed the water rate study for the city, to compile the previously requested information about the effects of removing the senior citizen discount on the budget. He also addressed the $3,000,000 loan made to Endeavor real estate from the water and sewer fund, stating that it was included in this year’s expenditures, but because it is a loan, it was also listed in accounts receivable and was included in the next year’s budget. 
In the water and sewer fund’s proposed budget, the most recent numbers show the fund balance will start the fund with $1,707,138, still in the “black” but $610,152 below the ideal fund balance. The proposed budget would end the next fiscal year in the black with a fund balance of $1,324,228, but still under the ideal fund balance of $2,013,786 by $689,558.
The council also held the second public hearing for the proposed property tax rate, with no one addressing the council regarding the tax rate. It followed that up with a hearing for the first amendment to the proposed 2017-2018 city budget, with no one addressing the council about the amendment. 
The council will formally adopt the city budget and tax rate at its next regular meeting, on Tuesday, September 5.