Rockdale City Council members, in a “telephonic” session Monday in adherence to social distancing guidelines, set in motion the next set of water bill, and possibly tax, increases, to pay for massive renovations of water and sewer infrastructure.
During the session council members also discussed how to handle delinquent water-bills when current COVID-19 leniency is lifted and changed the dates of city and special elections until the Nov. 3 general election.
BIG PROJECTS—Last January, after many months of discussion, the city embarked on massive projects to essentially replace its antiquated, failing, water and sewer systems.
Three consecutive years of substantial water and wastewater rate increases were forecast to pay for the improvements
The first hikes went into effect in spring 2019, effectively doubling many customers’ water rates.
Monday’s council action was to start the second phase, resolutions authorizing the city to publish notices of intention to issue certificates of obligation to pay for the projects.
TAXES?—Both resolutions read notice of intent to “tax” and surplus system revenue (water and sewer bills) and that drew a question from council member Belinda Hillhouse who questioned Mayor John King if the original intent was to pay for improvements solely through rate increases, not through ad valorem taxes.
“We had chosen originally to do it out of revenues,” King said. But he added the change in wording came about as part of language preferred by the state agency, Texas Water Development Board, to which the city is applying for funding.
“It’s a more attractive form of rate structure to them (TWDB) to do it this way,” he said.
The mayor said approval by the council—which came on a unanimous 6-0 vote— did not necessarily mean ad valorem tax funds would be used.
SAGA—The projects, together totaling about $64-million—with $45-million to $46-million on the water side—have undergone considerable revision over the past year.
King said about $10-million of that total has been reduced. “Hopefully, it will come down ever farther,” he said.
During the past year the council first decided to purchase water from an outside source—Blue Water— then backed away from that decision.
Earlier this year the council okayed a new approach to billing multi-family dwellings which its consultant said would probably result in no water rate hike this year.
King noted the actions approved Monday represent the second of the three funding phases. “Yes, this will eventually result in more rate hikes,” he said.
He said one more phase is to come. “That looks to be in five or six years and we hope a couple of other bonds, not for this project, will come down before we start this next phase,” he said.
END GAME—Council members discussed how to deal with recouping water bill revenue lost in the COVID-19 period.
The state has mandated no customer’s water service be shut off due to unpaid bills during the current state of emergency and the city endorsed that policy last month.
“We can’t give it away forever,” Mayor King said. He said there are about 45 accounts affected by the situation.
The council voted to allow city officials to use their judgment in working out a repayment plan.
ELECTION—The council took a series of votes dealing with what would have been the May 2 city elections as follows:
• East Ward Member Denise Holmes Wallace, who is unopposed for a new term, was declared elected and the east ward voting was canceled.
• The West Ward election was moved to the general election date of Nov. 3. Candidates Lin Perry and Monique Gebhart are vying to replace Doug Calame, who did not file.
• Two special elections were also re-schedule for Nov 3. They will ask voters if the boundaries of the Rockdale Hospital District should be expanded to the school district lines and whether the City of Rockdale should convey Fair Park to the Rockdale Fair Association.
- Log in or Subscribe to post comments.