To pay for water and wastewater treatment plants, La Joya may increase utility rates – Progress Times

2022-08-20 00:08:26 By : Ms. Monica J

The city of La Joya may increase water rates in October to pay for two major infrastructure projects.

During a meeting on Wednesday afternoon, the City Council discussed water rates with Jeff Snowden, the owner of Frisco-based Capex Consulting Group.

Snowden told the City Council that La Joya couldn’t afford to build a new wastewater treatment plant and a new water treatment plant without increasing rates. He presented the City Council with a proposal to increase water rates on Oct. 1 — and every October until 2026.

“To make it understandable, you’re looking at about a Whataburger a month,” said Interim City Manager Leo Olivares. “Less than a Whataburger a month to invest in your community and continue to grow.”

La Joya depends on two aging plants to treat water and wastewater.

The city treats wastewater by running sewage through a series of ponds, which separates water from solids. La Joya built the pond-based system in 1982.

Designed to treat just 350,000 gallons of sewage a day, the wastewater plant struggles whenever rain sends additional water through the system.

La Joya also needs a new water treatment plant.

The city built the water treatment plant in 1998, according to documents La Joya submitted to the Texas Water Development Board. It can treat nearly 900,000 gallons of water a day.

“Right now we’re beyond capacity at our water treatment plant,” Olivares said.

La Joya estimated a new wastewater treatment plant would cost about $16 million. A new water plant would cost another $10.5 million.

The city, however, couldn’t borrow the full amount without being crushed by debt payments.

“We’re assuming the water development board, when they make you the loan, will forgive 70% of the loan,” Snowden said. “And you’ll only be required to repay 30% of the loan.”

The city also plans to use about $3.2 million left over from old bonds to pay for part of the wastewater treatment plant. La Joya would cover the remaining costs by increasing water rates.

Residential customers who use 5,000 gallons of water a month currently pay $52.90.

Under the plan, La Joya would increase the monthly bill by an average of 6.9% every year for the next five years.

The monthly bill would increase to $57.61 in October. By 2026, the monthly bill would be $73.88.

Commercial customers would also pay higher rates.

A commercial customer who uses 50,000 gallons of water a month currently pays $544.10.

Under the plan, La Joya would increase the monthly bill by an average of 8.1% every year for the next five years.

The monthly bill would increase to $610.97 in October. By 2026, the monthly bill would be $800.94.

While nobody wants to increase water rates, La Joya needs to replace aging infrastructure, said Mayor Isidro Casanova. The new water and wastewater plants will allow La Joya to grow.

“La Joya can no longer be stagnant like it has for many, many years,” Casanova said. “This is our time for us to grow and we have to be ready for it.”