AUSTIN, Texas — As expected, the Lower Colorado River Authority Board of Directors approved a water rate increase on Wednesday.
For firm water customers, like cities and utilities, the rate will increase by $10, from $155 per acre-foot of water to $165. One acre-foot is enough water to cover one acre, one foot deep.
The rate increase goes into effect in January.
In September, LCRA staff discussed the reasons for the rate hike. The money would go towards new water supply projects, offset overall cost increases, and fund ongoing dam upgrades.
The City of Austin is the LCRA’s largest customer, but a previous agreement excludes the city from the rate increase. LCRA spokesperson Clara Tuma said Austin has a long-term water supply contract with the LCRA that supplements the city’s water rights.
The agreement includes Austin’s prepayment of $100 million in 1999 that allows the city access to up to 325,000 acre-feet of water a year. Austin will have to pay for additional water when the city uses more than 201,000 acre-feet for two years in a row, excluding water for power plants.
Austin will pay the firm water rate if it goes over 150,000 acre-feet of water a year. According to the LCRA, Austin currently uses about 140,000 acre-feet of water a year. Earlier this year, the LCRA said it gave cities and utilities a notice about the possible rate hike.
Cedar Park is one of the larger cities affected. Leaders there prepared for the LCRA rate hike by increasing the city’s water rate in February 2024.
The following month, the average water bill increased from $84.42 to $92.28, a 9.3% rise. The city cited several reasons for the increase, including an increase in operations and maintenance costs, and rising costs for materials, equipment, fuel, and emergency repairs.
But Lago Vista Place One City Council Member Shane Saum said the rate hike would place a burden on smaller cities like Lago Vista, especially at a time when property taxes are rising in Travis County.
Saum sent the LCRA Board of Directors a letter detailing his concerns last month. The letter offered alternatives, like increasing rates for larger users or using part of the state’s $30 billion surplus.