By Chris Shadrock
Boerne City Council voted Dec. 10 to approve annual rate increases for water and reclaimed water services through Boerne Utilities starting in 2025 to fund necessary capitol infrastructure projects.
The measure was approved on its first reading with final approval expected at the Jan. 14, 2025, City Council meeting.
Breakdown of the New Rates
Water Rates
Residential water customers will see a 7 percent increase in their base charge per month. This equates to:
- Customers with a 5/8-inch connection: $28.11 to $30.08 (7% increase)
- Customers with a 3/4-inch connection: $58.58 to $62.68 (7% increase)
Council also approved rate increases for monthly water usage per 1,000 gallons as follows:
- 0 – 6,000 gallons: $2.14 to $2.23 (4% increase)
- 6,001 – 10,000 gallons: $3.58 to $3.72 (4% increase)
- 10,001 – 15,000 gallons: $4.91 to $5.11 (4% increase)
- 15,001 – 25,000 gallons: $5.38 to $5.60 (4% increase)
- 25,001 – 50,000 gallons: $7.52 to $10.15 (35% increase)
- 50,001 – 100,000 gallons: $8.91 to $12.47 (40% increase)
- 100,001+ gallons: $13.96 to $20.24 (45% increase)
The average monthly consumption for residential customers is 12,469 gallons.
The tiered usage increases are intended to curb overuse and incentivize water conservation. This approach lessens the increase for 97 percent of customers and sets a conservation signal to larger water users.
Commercial water customers will see a 7 percent increase on their base rate and the usage rate per month. Commercial customers that are irrigation only will see a 7 percent increase on their base rate, as well as the following usage rate increases:
- Small: 0 – 25,000 gallons/month (7% increase)
- 745 customers: Small offices and businesses
- Medium: 25,000 – 100,000 gallons/month (7% increase)
- 195 customers: Banks, restaurants, medium-size retailers
- Large: 100,000 – 250,000 gallons/month (10% increase)
- 40 customers: Hotels, nursing homes, HOAs, large retailers
- High Water Commercial Use: 250,000+ gallons/month (10% increase)
- 9 customers: Car washes, schools, apartments with central water meter
Reclaimed Water
Council approved a 7 percent increase for the base monthly rate for reclaimed water service. This equates to:
- Customers with a 5/8-inch connection: $11.50 to $12.31 (7% increase)
- Customers with a 3/4-inch connection: $14.50 to $15.52 (7% increase)
The following rate increases for monthly reclaimed water usage per 1,000 gallons were also approved as follows:
- 0 – 10,000 gallons: $1.75 to $1.87 (7% increase)
- 10,001 – 30,000 gallons: $1.85 to $2.13 (15% increase)
- 30,001 – 50,000 gallons: $2 to $3 (50% increase)
- 50,001+ gallons: $2.15 to $3.23 (50% increase)
As with the potable water, the tiered increase in reclaimed water usage rates were designed to curb overuse and set a conservation signal to larger water users.
Wastewater
Council approved new wastewater rates at its Nov. 12 meeting that will increase both the base monthly rate and the usage rate by 3 percent.
The increased rates will apply to all connection sizes for both residential and commercial customers.
The approved increases will take the average residential customers combined water and wastewater monthly bill from $90.46 to $94.71.
Rate Increase to Fund Capital Projects, Infrastructure
The increase in water rates for Boerne Utilities comes as a recommendation from a comprehensive study conducted by an independent third party. The rate adjustment is necessary to maintain the financial stability of the City’s utilities.
The increase in rates over the next five years will ensure coverage of rising operational costs and the more than $70 million in planned capital infrastructure improvements.
Timeline of Rate Increase Approval:
- Comprehensive Rate Study Performed
- October 22 Council Meeting: Presentation on results of study with feedback from mayor and council.
- November 12 Council Meeting: Sewer rate increase approved on first reading.
- December 10 Council Meeting: Water and reclaimed water rate increase approved on first reading.
The last water and wastewater rate studies were conducted in 2018 and 2015. Furthermore, Boerne Utilities has absorbed inflationary costs since its last rate increase in 2021.
“With Boerne Utilities, we are committed to continuing our investment in high-quality utility systems. We take a proactive and intentional approach to managing our infrastructure, ensuring that we can meet the growing service demands while maintaining the excellent service our customers expect,” City Manager Ben Thatcher said. “These necessary adjustments in rates will allow us to continue providing reliable and efficient services, while also positioning the City to meet future financial and operational requirements.”
RELATED: Boerne Utilities Capital Improvement Plan
The City of Boerne and Boerne Utilities own and operate six different utilities, including electric, national gas, water, wastewater, stormwater, and reclaimed water. Water customers account for the largest share of customer base and when combined with reclaimed water total more than 9,500 customers.
Even without capital projects, water and wastewater operational costs are expected to rise by 4.4 percent annually.
The most expensive project on the list is a new water treatment plant at Boerne City Lake to replace the existing facility built in the late 1970s. The $20 million project will take five years to complete from planning to operation and has been included on the Capital Improvement Plan for more than a decade. A pilot study for the new treatment plant is currently underway, approved by City Council in May 2024, to ensure the new plant will optimize and utilize the most current treatment technology available.
Two-thirds of the planned Boerne Utilities capital improvements are water-related and will be funded through debt issuance, capital reserves, and impact fees. The projects range in cost from $200,000 to $20 million. Listed below are the current projects included in Boerne Utilities’ plans.
Water Projects
- Water Treatment Plant Expansion (Boerne City Lake)
- Ammann Road Water Projects
- Expanded water line to connect to second GBRA delivery point
- New ground storage tank and pump station
- New water transmission main
- Carbon Filters at Water Treatment Plant
- WCID-4 Water Mains Oversizing
- New Water Tank Mixer
Reclaimed Water Projects
- Reclaimed Water Main Extensions (Trails and Cibolo)
- Reclaimed Water Tank and Pumps
- New Elevated Water Storage
- Ranches at Creekside Reclaimed Water Mains
Sewer Projects
- Wastewater Treatment and Recycling Center Expansions (Old San Antonio)
- School Lift Station Upgrades
- South Cibolo Collector
- Suggs Creek Sewer Extension
- School Street Lift Station
- Trails of Herff Ranch Main Replacement
City officials emphasized that the rate changes are designed to keep the adjustments manageable for residents and avoid “rate shock.”
“While there is no doubt these service enhancements are expensive,” Utilities Director Mike Mann said. “It is important to note that when properties develop, we have impact fee contributions that will help mitigate the costs to existing ratepayers.”
Even with the estimated $23 million in impact and developer fees, the proposed increase will ensure Boerne Utilities can meet rising costs, including wholesale water purchases, and fund critical infrastructure improvements.
NewGen Strategies and Solutions, the firm behind the rate study, highlighted the importance of strategic planning by Boerne City staff. The gradual rate increases will help manage the growing costs of providing safe, reliable water and wastewater services to residents.
