Mineola City Council got a different look at utility rates in a workshop last week.

Consultant Phillip Givens walked the council through the reasons for why utility costs should be calculated according to his recommendations, as well as the value to the public of good, clean water.

Mayor Kevin White said the council will be considering Givens’ recommendations during upcoming budget workshops.

Givens outlined seven objectives of his study of Mineola water and sewer rates.

The first is revenue stability, which he said means having enough money to operate the water and sewer systems without having to depend upon a certain level of demand.

Other than increased water usage, the monthly expenses are primarily stable, and revenues should cover those.

Financial integrity of the system means having enough money to pay all the obligations, Givens said.

The point of fair cost distribution is that those who use the most should pay their fair share.

Rates should be kept simple, Givens said, so that customers and city staff can comprehend it. If it’s difficult to explain, it is too complicated.

Water conservation has been a major focus in recent years, he said, and water rates should encourage conservation.

The utilities should be sustainable, Givens said, and be able to operate without outside aid, such as tax dollars.

The value of water and sewer service, at pennies on the gallon, should also be stressed, he said, later comparing them to other utilities such as electricity and telephone.

Givens added the cost of depreciation into his calculations, explaining that a utility needs to be able to pay for needed repairs.

City Secretary Cindy Karch said the city is facing aging infrastructure, which Givens said is an issue nationwide.

He also addressed the higher rates the city charges to residents who live outside the city. He said that any higher charges must be justified by costs, and if the city is challenged before the Public Utility Commission, it must be able to defend them.

Givens also calculated the rates based on meter size rather than residential versus commercial.

The bulk of Mineola’s 2,491 water meters fall into the smallest category (2,129), with only a handful having larger meters, such as school facilities.

The city last had a rate study done in 2014, which recommended an 18% increase, though it was not implemented.

According to Karch, that left the utility fund short of cash, and some nine percent increases yearly have been adopted.

She said the tool Givens used to calculate the rates can be used each year.

Rate increases follow the budget cycle, beginning Oct. 1. Last year water and sewer rates rose four percent.

Under Givens’ model, rates would increase or decrease for various classes of customers. Some of the average residential meters would see a slight decrease.