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City Council Meeting Minutes March 1, 2022 <br />a tier with the size of meters. <br />Mr. Hjorth stated the first tier is 6000 gallon on residential customer with the <br />minimum base charge of $26.82. He noted from 0 to 6,000 gallon is $4.49 per <br />1000 and from 6,001 to 9,000 gallon is $7.86. He mentioned the fee does get <br />higher with more usage with the idea of more conservation. He stated the <br />wastewater rate with the first 2,000 is $27.88 and over 2,000 gallon the fee is <br />$8.03. Mr. Scott would like to see the rate of $8.03 for the first 2,000 gallons of <br />wastewater. <br />Mayor Hughson noted that we have a Citizens Utility Advisory Board (CUAB) <br />and inquired as to their responsibility. Are recommendations on rates part of <br />their charge? <br />Mr. Hjorth stated that consultants looks at what it costs to run the water plant, <br />wastewater plant, and what revenues we need to pay debt service and current <br />processing costs. The CUAB takes all of that into consideration regarding what <br />rates we need. We also want to maintain a very good bond rating. <br />Council Member Prather asked, "How do we keep our utilities from <br />increasing?" He noted that if a person is living on $1,000 a month, a $100 <br />utility bill is 10 percent of their income. For a household living on $10,000 per <br />month, a $100 utility bill is only 1 percent? How can we approach this with <br />fairness in mind? <br />Mayor Hughson informed the council that we have a lifeline rate for water and <br />wastewater that is a reduced rate. She noted that on our webpage that shows <br />the rates does not have information as to how to apply for this reduced rate. <br />Council Member Gonzales inquired about raising impact fees, which is the fee <br />charged to developers to pay for the impact on the system of new development. <br />Mayor Hughson inquired as to the requirements in order to raise the fees. Staff <br />responded that study is required to ensure that the fee is covering the cost, but <br />no higher. Council does not have authority to raise the rates any higher. <br />Ms. Reyes stated that past councils have wanted to impose small increases as <br />they are needed and not to wait for a year or two and then raise the rates by a <br />higher percentage. Council can discuss this. She also noted that there is <br />funding set aside for those who need help paying their utility bills. <br />Council Member Prather also noted the need to conserve water. He is more <br />City of San Marcos Page 16 <br />