Did you know that Austin's water rates are the highest among major Texas cities, and among the highest of the 50 largest cities in the US?
6 facts you should know about the cost of water in Austin.
1. Austin’s water rates are the highest among major Texas cities, and among the highest of the 50 largest cities in the United States. See Figure 4 on page 5 of the 50 City survey published by Black & Veatch (a major contractor on the City of Austin’s Water Treatment Plant No. 4 project). Austin is shown ranked 8th highest nationally out of 50 for a monthly water and sewer bill for a residential customer using 7,500 gallons per month (which is close to the “average” in Austin).
2. The Austin City Council has raised residential water rates every single year since 2004. See the annual rate increases each year from 2004, projected out to 2015 here, based on city projections during the 2010 budget hearings for Fiscal Year 2011 (Oct 1., 2010 thru Oct 1, 2011).
3. During the summer 2010 budget process for FY 2011, city staff projected a five year water rate hike for residential rate payers of 30 percent (FY 2011 thru FY 2015). During those same hearings, analyst and researcher Scott Henson wrote a report for the SOS Alliance titled The Perfect Storm predicting a 74 percent rate hike over five years.
4. This year Councilmember Bill Spelman, using Austin Water Utility data released in May 2011, has projected a five-year residential water rate increase of 66 percent for FY 2012 thru FY 2016. Spelman’s spreadsheet is reproduced here. Or go to Spelman’s website and click on “spreadsheets here” and look at the “monthly bill” sheet.
5. The planned water rate increases roughly equate to 25 percent this year (taking effect October 1, 2011) followed by annual increases of 10 percent for each of the following 4 years. The full extent of the rate increases is hidden by the staff proposal to adopt a new “sustainability fee” that would hit all customers, including low volume water users and low income residents.
6. At the bottom of page 2 of the Black & Veatch 50 City rate survey, B&V explains generally increasing municipal water and sewer rates in this way: “In general [water] usage is declining while many utility costs such as debt service are fixed."