Mineola City Council reviewed a detailed study of the city’s water and sewer rates Monday, including suggested rate increases to keep the water and sewer services in the black.

Communities Unlimited conducted the study and gave several possible rate structures to help those two departments get closer to break even and set aside funds for emergencies or future projects.

Among the recommendations was higher rates for larger water users.

Janelle Saucedo with Communities noted that based on 2023 usage, the largest customers, those using more than 50,000 gallons monthly, are using 11% of the water but paying 9% of the revenue.

On the other end, 4% of the customers are paying 11% of the revenue due to their minimum bills.

Under the proposals, those higher-end users would see increases in their cost per thousand above 10,000 gallons.

In addition to making the rates more fair, said Communities’ Tom Fulton, it also promotes water conservation.

While projected revenues for water sales meet about 91% of the budget, sewer bills are generating only about one-third of the expenses.

City Manager Mercy Rushing reviewed years of rates, noting that the city has had recommendations to raise rates annually but has not always done that.

“It’s actually the fair way to do this,” she said of raising rates for higher users. And it will help the city in the long run to keep the departments solvent.

The city council took no action but will be looking at utility rates as part of its deliberations for the 2024-25 budget.