Response to Rate Increase Concerns
March 01, 2017
Our office has received some feedback to the recent base rate increase, and I would like to respond to some of the comments received. First and foremost, I want to let you know that all of our Board of Directors (BOD) and most of our employees that are Kempner Water Supply Corporation (KWSC) members do not receive any discounts on their water bills, or on services provided by this company. Second, it is of the utmost importance to the KWSC BOD and the employees that you know the water rates are increased by necessity.
Some of the comments I have heard are listed below along with my response to those concerns:
- KWSC does not charge taxes and does not receive any tax monies from the citizens like the cities do. If you add a percentage cost of taxes the cities charge onto their utility bills, you may find the water costs more comparable.
- Yes, it is true KWSC is in a lawsuit with the City of Lampasas. The reason KWSC does not stop the lawsuit is due to the unfair expenses the current contract has on KWSC members. At this time KWSC members are paying for approximately 63% of all operations and maintenance costs for the city of Lampasas to Central Texas Water Supply Corporation. These costs are of absolutely no benefit to KWSC members. The cost of subsidizing Lampasas is going to affect you for generations to come adding up to millions of dollars over the life of the contract, expiring in 2084. Yes, you read that right. If you take $633,912.00 spent in just one year and multiply that by another 67 years, not counting inflation and costs for Lampasas population growth, the subsidy will equal over 42 million dollars KWSC members will be paying for the sole use of Lampasas, with no benefit to KWSC members. Therefore, our present board and myself along with our legal team are using various avenues of approach to do everything in our power to make the contract fair to both Lampasas and KWSC members. KWSC wants nothing more than to work out a fair contract with Lampasas that will have the resultof Lampasas paying for 100% of their water costandwe pay for 100% of our water cost.
Your questions and concerns are important to me and our board members, so please feel free to contact me on your thoughts’ and ideas so I can continue to keep you and our members informed.