The Mineola City Council approved increased water and sewer rates Monday that will significantly raise minimum bills and increase the additional charges for 143 customers outside the city limits.

The fee increases were recommended by a utility rate study the city commissioned earlier in the year aimed at making sure the utilities pay their own way and put back reserve funds for emergencies and future capital expenditures.

The $20 minimum residential water bill is an increase from the current $14.36 but does include the first 1,000 gallons of water, unlike the current minimum.

The minimum residential water bill outside the city will go from $15.18 to $30, or 1.5 times the rate for those inside the city limits.

The minimum residual sewer bill will go from $20.14 to $27 inside the city and from $23.07 to $40.50 outside the city.

The new rates also are tiered so that the more water used, the higher the rate.

The top level, 30,000 gallons and above, will be charged at $11.50 per 1,000 gallons while the sewer charge will be $10.50 per 1,000. All outside city rates are 50% more than inside city rates.

The lowest level, from 1,000 gallons to 5,000 gallons, will be charged at $8.27 per 1,000 in the city, increasing to $8.50 per 1,000 for 5,000 to 10,000 gallons. Most residential customers fall in those two ranges.

Public Works Director Kyle McCoy said the new rates shift the burden to higher usage customers. He also noted that with high rainfall this year, the city is projecting a $200,000 shortfall in water revenues. The new rates would help alleviate that.

City Secretary Cindy Karch said the new rates still put Mineola in line with most area cities of similar size. 

Also approved was an increase in the administrative fee for water cut offs from $30 to $50. She said the city has procedures in place to work with customers who may be having trouble paying their utility bills, such as extensions and payment plans.

The city averages 30 to 60 customers per month whose water is cut off for non-payment.

The council also approved the 2024-25 city budget and the property tax rate of 53-cents per $100 valuation.

A bid was awarded for the joint project with Wood County to install a septic receiving station at the Mineola sewer plant.

The county is using $1.2 million from its American Rescue Plan Act funds to pay for the station, which the city of Mineola will operate and collect fees.

McCoy noted that it will be available for use only when it is staffed by the city. It will be restricted to Wood County initially until the city can see how much volume can be handled.

The bid for $1,057,070 was awarded to local firm 7-H Construction Co. It is expected to be operational for manual use around the first of the year and fully operational next summer.

The council approved a resolution authorizing filing an application with the Texas Water Development Board for a $5.5 million loan, of which 90% can be forgiven, for water system infrastructure improvements.