EL PASO, Texas (KTEP) - The Public Service Board adopted a $956 million budget for 2025 with a 7 percent increase in water and wastewater rates.
The budget increase is $67 million more compared to last year. The additional funding is dedicated to paying increased costs for personnel, capital projects and debt service.
On average, homeowners can expect to see a $5.71 increase on their monthly water bills or $82.08. The charges cover water and wastewater services. Those fees also include a $1.02 increase for the stormwater portion.
The new rates will take effect March 1. It is the 10th consecutive year water and wastewater rates have increased.
“We try to do as good a job as possible to minimize rate increases by spreading projects across multiple years and really being judicious about how we’re utilizing customer money,” said John Balliew, president and CEO of El Paso Water.
The Public Service Board oversees El Paso Water and stormwater budgets. The board consists of the mayor and six members appointed by the City Council to serve four-year terms.
PSB Chair Bryan Morris said some customers emailed the board to object to the proposed increases to the 2025 budget.
The utility’s average water and wastewater bill for homeowners is still below the average among other Texas cities including Houston, Austin, Corpus Christi, Plano and Arlington. But bills are higher than in some larger cities including Fort Worth, San Antonio, Dallas and Laredo, according to an El Paso Water analysis of the ten largest Texas cities as of last October.
El Paso Water has budgeted $592 million for capital improvements at its facilities this year including $213 million for rehabilitation and expansion of the Bustamante Wastewater Treatment Plant in the Lower Valley. Increases in this year’s budget also account for an additional $82 million dollars for personnel costs.
The vote on Wednesday was 6-0 with all but one board member approving the new budget and rate hikes. Newly- elected Mayor Renard Johnson abstained from both votes because of his recent appointment. Johnson took office Monday and participated in his first City Council meeting as Mayor on Tuesday.
Increases in this year’s budget also account for an additional $82 million dollars for personnel costs.
“We have many positions we have been able to fill, which have not been filled in the past,” said Balliew. “Because we were unable to hire.”
Balliew said $126 million of those dollars will also be used to support new developments throughout the city. He said new developments are a driver of increased costs each year.
He said El Paso Water received up to $2.5 million from developers to build new infrastructure.
"And, that's just a drop in the bucket for new development," Balliew said.
Builders are charged impact fees in undeveloped parts of the city to pay for new lines. The El Paso City Council raised impact fees last year.
“That one is something we are always going to struggle with, is how it’s funded,” he said.
Balliew said El Pasoans will have a chance at saving on their water bill despite rate increases.
An estimated 15,000 customers out of 220,000 total El Paso Water users will be eligible for a decrease, according to the utility. Those customers are considered very low consumers who use 748 gallons of water a month. Those households would see about $10 in savings compared to last year or $35.99 a month on their bills.
And, an estimated 69,000 customers who use 2,992 gallons a month would see a savings of $11.45 or $48.23 a month on their bills.
To compare, the average homeowner uses an estimated 6,792 gallons of water a month.
“It’s a tough bar but there are a lot of people that will take advantage of it. And, reduce their bill,” Balliew said. “When it comes to rate making it is a zero sum game. So, you set your budget, that’s how much money you need. And, you divide that up among the different customers. So, if some customers are saving money, that means that other customers are having to pay the differential.”
Stefanie Block Uribarri, a member of the PSB board and general manager of Pearl Properties apartments, made a motion during the meeting to not implement the proposed savings for low-water users to the 2025 budget.
Her request was not supported by any of the other members.
As for stormwater costs, Balliew said homeowners should expect one more year of increased rates. He said the utility expects to propose a freeze on the stormwater rate the next three to four years after.
El Paso Water budgeted $101 million for stormwater investments and operations in 2025. Those costs include a proposed pond project near the John T. Hickerson Water Reclamation Facility just below the Montecillo community.
The stormwater budget also includes investments for the $15.5 million Will Ruth Pond in the Northeast. The project is expected to be able to capture 93 million-gallons of water to provide flood control for nearby homes.
“We’ve got a lot of projects on the table. Lots of projects underway,” he said. “So, it’s not that we are decreasing any level of service but we are catching up and will have an opportunity to wait on some other projects.”
Balliew said El Paso Water anticipates stormwater investments will be needed along Doniphan near the Rosa’s Cantina restaurant as the International Boundary Water Commission continues raising levees along the Rio Grande.
He said the IWBC will have flood walls in-between the river and Doniphan in the near future.
“So, water that’s coming off of the interstate and the mountain will not be able to get into the river,” he said. “So, that will have to be dealt with.”
El Paso Water and the El Paso Municipal Drainage Utility already own more than a dozen properties in the area around Rosa’s Cantina. Balliew said homes built on those properties may be torn down to make way for ponds in the near future.