Last Thursday Marshall City Councilmembers approved a water/wastewater rate increase plan for the next five years after a presentation on a rate study done by New Gen Strategies and Solutions.
The rate increase is the city’s first since 2018, and was necessary to continue funding the program, according to the study.
Final approval for rate increases saw a jump of 13.98 percent in July 2021, then a raise by about 3 percent in January 2022, 2023, 2024 and 2025.
Along with the rate increase, councilmembers also approved an increase in the water rate base charge for services.
On June 1 this year community members with a ¾ in or less pipe size can expect to see an increase in their base rate by about $1, with 1 inch customers seeing about a $2, with the price growing along with the pipe size.
Additionally, the average monthly residential customer using 5,000 gallons of water with a ¾ in pipe will see an increase in their water bill by about $4 in June 2021, with less than a dollar increase in charges the next four Januarys.
The average monthly residential sewer customer’s bill will also increase by about $4 in June 2021, with an increase in charges slightly over a dollar for the next four Januarys.
Chris Krut with New Gen explained during the presentation Thursday that the initially high rate increase is necessary due to the city not raising rates for the past three years, and that delaying the increase in rates would only prolong the problem.
The study commissioned by the city of Marshall’s public works department found that in the next five years with the city’s current rate, water and wastewater are both projected to under recover their costs of service, with the exception of the water rate projected for 2022.
This, coupled with a wide range of necessary projects planned for the city’s infrastructure within the Capital Improvement Project, shows a need for increase in revenue for the water/wastewater.
Eric Powell, the director of the city’s Public Works department, said that the increase in revenue will help to fund a number of projects needed within the water and sewer pipe systems in the city of Marshall.
Krut pointed to a number of boil water notices that were caused by issues in the city’s aging system, issues he said would continue to happen without opening up funding of these projects.
A presentation on the full water/wastewater study done by New Gen Strategies and Solutions is available on the city’s website at www.marshalltexas.net/AgendaCenter/ViewFile/Item/61?fileID=1088.