SUBJECT: Ordinance calling a public hearing on a proposal for the City of Houston to update rates charged for water and wastewater utility services under Chapter 47 of the Code of Ordinances, Houston, Texas
RECOMMENDATION: (Summary) Adopt an ordinance to set a date to conduct a public hearing on an update to the City of Houston’s water and wastewater rates.
SPECIFIC EXPLANATION: The City of Houston operates a combined utility system for the purpose of providing water and wastewater service to its residents and other governmental and private entities pursuant to Texas Government Code Chapter 1502. Under state law and the City’s bond covenants, the City must charge rates sufficient to meet its costs of service for providing water and wastewater services to its customers. Cost of water and wastewater services include capital expenditures, debt service and operations and maintenance for all facilities and services needed to provide water and wastewater service within the City’s service area in accordance with applicable laws.
In 2019, the City entered a contract with Carollo Engineers, Inc. to perform a Cost of Service Study. The study included determining the City’s revenue requirements, allocating costs among the customer groups, and designing just, reasonable and non-discriminatory rates. Carollo Engineers, Inc. will produce its report for City Council review, and the City will seek input from its customers and other stakeholders on rates to be set by ordinance.
Public Works recommends setting the public hearing on April 28, 2021.
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Carol Ellinger Haddock, P.E.
Director
Houston Public Works