FEE & RATE CHANGES
The following changes are scheduled to go into effect on September 1, 2023
Maintenance Fee
The Maintenance Fee charged to all customers is changing from $35.00 per month to $47.50 per month
The additional revenue associated with this increase will be deposited to a separate fund dedicated to improving our infrastructure and making it compliant with TCEQ regulations. Some of the projects include replacing or upgrading distribution pumps and pressure tanks (tentatively scheduled for 2024); replacing existing two water storage tanks with a 20,000 gallon capacity, TCEQ-compliant tank or tanks (tentatively scheduled for 2025); upgrades to the reverse osmosis water filtration system; and the engineering costs associated with the proposed projects.
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Water Usage Blocks
The water usage blocks, implemented in 2013, are being adjusted to reflect how our customers actually use their water.
Fifty percent (50%) of all residential water bills issued in a year are for 2,000 gallons or less.
Seventy-six percent (76%) of all residential water bills issued in a year are for 4,000 gallons or less.
Ninety-two percent (92%) of all residential water bills issued in a year are for 7,000 gallons or less.
Ninety-six percent (96%) of all residential water bills issued in a year are for 10,000 gallons or less.
Only four percent (4%) of all residential water bills issued in a year are for more than 10,000 gallons.
The current usage block structure is:
0 - 2,000 gallons Minimum Amount: $30.00
2,001 - 6,000 gallons $ 4.50 per 1,000 gallons
6,001 - 10,000 gallons $ 8.00 per 1,000 gallons
10,001 - 15,000 gallons $12.00 per 1,000 gallons
Remainder > 15,000 gallons $16.00 per 1,000 gallons
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The new usage block structure will be:
0 - 2,000 gallons Minimum Amount: $30.00
2,001 - 4,000 gallons $ 4.50 per 1,000 gallons
4,001 - 7,000 gallons $ 8.00 per 1,000 gallons
7,001 - 10,000 gallons $12.00 per 1,000 gallons
Remainder > 10,000 gallons $16.00 per 1,000 gallons
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If you use 4,000 gallons or less of water, you will only experience the $12.50 increase in the Maintenance Fee when this new block structure goes into effect. Sample billing is shown in the FAQs below.
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SUPPLEMENT TO FAQs - How do I calculate my bill?
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FAQs About the Change in Rate Structure
ARE THE WATER RATES GOING UP?
The Maintenance Fee is going up, but water rates are not changing. What is changing on the water usage is the usage block structure. This change may not even affect you (see the examples in the question below).
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WHEN DOES THIS CHANGE BECOME EFFECTIVE?
The change in Maintenance Fee and usage blocks will be effective on September 1, 2023. The first bill that will reflect these changes will be sent out during the first week of October 2023.
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WHY IS THE CORPORATION CHANGING THE MAINTENANCE FEE AND USAGE BLOCKS?
The main reason the Corporation has changed the Maintenance Fee is so that we can generate more funds to help pay for changes to the water system’s infrastructure to meet TCEQ requirements and improvements that we want to make but can’t afford quite yet. We’ve adjusted the usage blocks so that they better match how our customers use their water. The original usage blocks created in 2013 were pretty much based on guesswork. We now have enough information, and customers, to establish realistic usage blocks.
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ISN’T THIS THE FIRST TIME THE RATES HAVE BEEN CHANGED SINCE 2013?
Yes, that is true. The last time the Corporation changed Maintenance Fees and water rates was in 2013 when we first implemented the usage block rate structure. They have not changed since then. Unfortunately, during that 10-year period daily operating costs have gone up. Today’s prices are about 30% higher than they were in 2013 due to inflation. Our ability to cover operating costs with current revenues has essentially dropped by 30%. And our ability to cover infrastructure improvements through capital expenses has dropped even further.
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IS THIS FEE INCREASE THE ONLY WAY YOU’RE GOING TO PAY FOR THESE CHANGES AND IMPROVEMENTS?
No. We are also in the process of looking for grants. We think we have a good chance of getting State or Federal grants to help pay for the things that need to be done, but we also know that we must show that we are doing our part to raise the money needed for the improvements. We may also look for low interest loans outside of grants, but that is not our first choice.
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HOW DOES THIS RATE STRUCTURE CHANGE AFFECT ME COST-WISE?
For most of our members, the only change you’ll see is the additional $12.50 from the increase to the Maintenance Fee. The change in the usage blocks will only show up if you use over 4,000 gallons of water in any given month. Most of the time most of our customers use less than that amount. In fact, seventy-six percent (76%) of the time our residential customers use 4,000 gallons of water or less in a month. Of course, the higher your usage the greater the impact of the usage block changes. Here are some examples:
Customer A uses 2,520 gallons of water. Their bill under the current structure is $67.34. Their new bill would be $79.84. Increase $12.50, The increase due to the change in Maintenance Fee is $12.50. The increase due to the usage blocks change is zero.
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Customer B uses 7,390 gallons of water. Their bill under the current structure is $94.12. Their new bill would be $115.18. Increase $21.06. The increase due to the change in Maintenance Fee is $12.50. The increase due to the usage blocks change is $8.56.
Customer C uses 3,590 gallons of water. Their bill under the current structure is $72.16. Their new bill would be $84.66. Increase $12.50. The increase due to the change in Maintenance Fee is $12.50. The increase due to the usage blocks change is zero.
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Customer D uses 1,420 gallons of water. Their bill under the current structure is $65.00. Their new bill would be $77.50. Increase $12.50. The increase due to the change in Maintenance Fee is $12.50. The increase due to the usage blocks change is zero.
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Customer E uses 15,060 gallons of water. Their bill under the current structure is $175.96. Their new bill would be $227.46. Increase $51.50. The increase due to the change in Maintenance Fee is $12.50. The increase due to the usage blocks change is $39.00.
Customer F uses 4,790 gallons of water. Their bill under the current structure is $77.56. Their new bill would be $92.82. Increase $15.26. The increase due to the change in Maintenance Fee is $12.50. The increase due to the usage blocks change is $2.76.
IS THIS THE LAST TIME YOU’LL BE INCREASING MY RATES?
Although another increase is not planned right now, we have determined that it is important to look at our rates each year during our budget process to be sure that they are where they need to be given our financial situation. Because we know there will be significant costs to the infrastructure requirements and improvements, we know that we won’t be going another ten years before rates are increased again. If we must increase rates, we will give you two months’ notice before implementation. We will let you know in plenty of time for you to plan for any increase in your water bill.
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WHY SHOULD I PAY MORE FOR IMPROVEMENTS TO THE WATER SYSTEM WHEN I DON’T USE WATER?
The deed restrictions for each development served by Crown Mountain Water Supply require that property owners pay a Maintenance Fee. The Maintenance Fee is fundamental to covering the operating costs of our water supply. And even though you may not be using water now, you have the potential to take water from our system, and we have an obligation to provide you with that water when you’re ready for it. Having an improved water supply benefits both you and the members who use water. Also, any fines that are assessed against the corporation for failure to comply with TCEQ regulations will ultimately be paid for by our members in one form or another.
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AREN’T YOU JUST TRYING TO MAKE MORE PROFIT OFF ME?
No. Crown Mountain Water Supply Corporation is a non-profit organization. There is no “profit” involved. Every bit of revenue generated by bills, and paid by you the members, goes right back into the corporation. The Board of Directors strives to keep expenses reasonable, but we recognize that we must spend money, more than we’re used to, to meet regulatory requirements and to provide the improvements to water quality that we all want to see.
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TELL ME AGAIN WHAT YOU’RE USING THIS ADDITIONAL MONEY FOR?
As we have mentioned before, we need to replace or upgrade the distribution pumps and pressure tanks (planned for 2024). We need to replace our water storage tanks to 20,000-gallon capacity (planned for 2025) with TCEQ-compliant equipment. We want and need to upgrade our reverse osmosis (RO) water filtration system. And we must pay for the engineering costs associated with those projects just listed. Most, if not all, of the items listed are required to comply with TCEQ regulations. Some of these projects are also necessary to maintain and improve the quality of our water.
This is not a complete list of projects, but it is the most pressing. As you might expect, there are also equipment repairs and replacements that are considered more maintenance related. For example, getting all the system shutoff valves replaced and elevated above ground was planned for this year and next, but will have to wait until the TCEQ-directed improvements are made.