Updated Wednesday, June 27, 2012 at 10:08 a.m. CDT:
TYLER (TYLER MORNING TELEGRAPH) - Results of a new water utility study released Wednesday indicate a rate hike is on the horizon for Tyler Water Utilities customers, lest the city face a looming funding gap.
City leaders agreed in January to launch a study to see if the current water and wastewater rates are keeping pace with projected demand and future costs of operating in a state pummeled by drought and wildfires.
Without a boost in rates, Tyler could face a $4.7 million shortfall in the new fiscal year, due mostly to plans to sink $7 million into capital improvements.
The $35,000 study, conducted by J. Stowe & Co., precedes efforts to draft and finalize the new fiscal budget, Water Department leader James Yanker said.
Consultants say it will take a 2 percent increase in water rates and 7 percent increase in wastewater rates, an effective increase of 3.7 percent, to stay afloat and out of the red.
In actual dollars, that translates into a $2.43 increase on the average monthly bill for residential customers, if the council decides later to adjust the rates.
Tyler City Council took no action on the report this morning.
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The Tyler City Council plans today to receive a first glimpse of a new water rate study that could help elected leaders determine whether a hike is on the horizon for Tyler water utilities customers.
The $35,000 study, commissioned in January, was conducted by J. Stowe & Co. consultants in preparation for next year's fiscal budget.
The council is set to meet at 9 a.m. at Tyler City Hall, 212 N. Bonner Ave.
Officials are trying to ensure that the current rates stay on pace with future demand and planned capital improvement projects.
A presentation by the consultants is planned during the meeting, but no action is expected without further council consideration.
In other agenda items, the council also is expected to consider a request from Denise Walker to grant a zoning change allowing a rescue mission to operate for one year at 1016 Rusk St.
The item was previously rejected by the Tyler Planning and Zoning Commission.
Other zoning items up for consideration include a zoning change allowing Southside Bank to construct a mixed use project at 1010 E. First St., and a voluntary request from Genecov Investments to annex 88 acres near Texas Highway 64 and County Road 1184 into the city limits.
Both items were recommended for approval by the commission.
Elected leaders also are expected to meet and possibly ratify employment for a new city librarian.
