By Will Pafford, Staff Writer

Wastewater rates for Rollingwood residents were reduced 15.6 percent by the Rollingwood City Council April 5.
 

Residents will now pay $5.61 per 1,000 gallons instead of $6.65. Residents will see the changes on their next water bill, City Administrator Vicky Rudy said. 

The monthly wastewater cost for residents is based on the average monthly water use during the winter months of November through March, Rudy said. 

The city takes the three months with the least amount of water used and averages them to determine the monthly cost of wastewater for each house, which will be the same each month for the next year. Each household also pays an additional $65 base fee.

Utilities Commission Chairman John Hinton said this year had a dry winter, and water consumption increased 40 percent in the city. 

Hinton said the commission recommended the Council use the winter averages but lower rates so the city remains revenue neutral despite the increase in winter water use. 

Grady Reed, an engineer at HDR Engineering Inc., explained the increase in water usage and options for the Council during its meeting. 

Reed said if the city used the increased winter average and left the rates at $6.65 per 1,000 gallons, it would have a $54,547 budget surplus. 

Reed also presented two options for keeping the budget balanced. 

The city could lower rates for commercial and residential customers by 12 percent, or only residents by 15.6 percent and remain revenue neutral. 

Reed said he cautioned against reducing rates for a temporary condition, such as a dry winter, because when the condition changes the city may have to raise rates, which can be politically challenging. 

Unstable rates also make it hard for residents to plan, he said. 

Alderwoman Shanthi Jayakumar made a motion to accept the Utility Commission’s recommendation by lowering rates 15.6 percent for residents.

The Council approved the reduced rates unanimously.