CITY OF BURTON LIKELY TO RAISE WATER RATES

  

City of Burton utility customers should prepare to see an increase in their water bill.

During last week’s Burton City Council meeting, City Secretary Angela Harrington announced that the city’s water/sewer operations are running at a deficit of upwards of $45,000 in this fiscal year.  As the city prepares to add to its existing debt obligations due to the water well project, she said the city will have to raise utility rates to support those improvements.

According to Harrington, the city has a balance of approximately $245,000 left to pay from its 2016 obligations, and that will go down to $205,000 after the city’s next payment in March. 

The city plans to have the 2016 debt paid off in September 2027, but there will be a two-year overlap between the existing obligations and the ones the city will take on through the drilling of a new water well.  In December, the council authorized publication of the notice of intent to issue up to an estimated $685,000 for the water system improvements.  The city will also be using a $593,800 grant from the Texas General Land Office.

Harrington said at this time, it does not appear that a property tax bond election will be needed specifically to pay for the new obligations, but some city savings and maintenance and operations funding may be needed to cover the overlap of the new and existing debt payments.

Harrington said the city will complete a water/sewer rate study within the next few months.