Portales City Council hears proposed water rate increase

PORTALES -- The Portales City Council voted Tuesday to postpone consideration of a proposal to increase the water, sewer and garbage rates across the board for all residential, commercial and industrial users.

The proposed rate would increase the cost of residential water inside the city borders for the first 2,000 gallons by 30 percent every year for a period of the next five years, as stated in the city proposed rate schedule chart.

Council member Michael James Lucero led off the lengthy discussion saying he was “kind of in sticker shock” and “we’re in a recession now,” calling the rate increases “significant across the board.”

Public Works Director John DeSha said in response: “I agree this is very aggressive but it’s been more than a decade since we’ve made increases.”

“If we don’t (increase rates), we won’t be able to provide services,” DeSha said.

He also said the proposed increased rates are a way to incentivize conservation of water.

The proposal includes other proposed rate increases to commercial users – both inside and outside the city borders — and to industrial users – both inside and outside the city borders.

Also proposed are additional incremental increases in the price per 1,000 gallons for residential water use from 3,000 gallons and upward depending on the number of gallons above the 2,000 gallon mark.

Another rate increase for commercial water use for the next five years of 30% a year is proposed as is an increase in the industrial rate by 200 percent the first year.

Councilwoman Dianne Parker asked why the city would make these increases “all at once?”

“This is the first year I have been allowed to present them,” DeSha said in response.

One council member asked who wouldn’t allow it. DeSha said “the city managers I worked for at the time.”

The News asked City Manager Sarah Austin if she were one of the city managers that would not allow DeSha to present rate-increase proposals.

Austin said in an email: “I am not that city manager that refused those requests for rate increases. I have only been here a bit over a year. As a city manager should know, it is vital to a municipal budget that rates are raised accordingly.”

Parker said she understands an increase in rates is necessary but “this is ridiculous. My concern if we do something like this … How many of our citizens can afford it?”

She said some citizens have had to have their water turned off because they couldn’t afford it.

“I don’t know how many citizens can actually afford this,” she said. “That’s a big concern.”

According to a city staff report, the city administration presented the proposed rate increases to the city Finance Committee, which proposed adoption of the rates to the council.

Councilman Oscar Robinson said he didn’t understand where these costs are coming from.

DeSha said: “These are the bare minimum we need to continue providing service. We’re in a deficit in all these departments.”

Councilman Jake Lopez said: “I would rather we did this through taxes instead of paying everything out of the water rates. I can’t believe we’re doing this.”

The council passed a motion to postpone the proposed rate increase vote and give it back to city staff to revise the numbers.