Truth or Consequences water rates went up 5.4 percent in September, an automatic yearly increase tied to the Consumer Price Index.
The Consumer Price Index, set annually by the U.S. Bureau of Labor and Statistics just before the federal fiscal year starts on Oct. 1, stated on Sept. 14 that the CPI is 5.3 percent. City Manager Bruce Swingle based T or C’s water rate increase on the CPI’s 10-month average through July, which was one tenth of a percentage point higher.
Next year, the CPI’s 12-month average will be used to determine the annual water rate increase, T or C Utility Office Manager Sonya Williams told the Sun in a Sept. 30 email.
The automatic yearly increase and the use of the CPI to calculate it are provisions of T or C Ordinance 712, adopted by the city commission in February 2020. In addition to these conditions, the ordinance imposed an immediate water rate increase of nearly 50 percent.
That increase was a prerequisite of the city’s receipt of a nearly $10 million grant/loan from the U.S. Department of Agriculture’s Community Development Block Grant program. The grant/loan will pay for both the replacement of about 11,000 feet of water lines downtown and upgrades to the Cook Street Station chlorination plant. The project, which is still in the design phase, is expected to begin after the first of the year.
Three of T or C’s four city-operated utilities now levy automatic annual rate increases. Only electric utility rates do not go up like clockwork each year. The city commission instituted a 5 percent annual increase in wastewater fees in 2018, again because it was a prerequisite for obtaining a $7 million grant loan from the USDA to upgrade the city’s sewer system. A 5 percent annual increase in solid waste fees was approved by the city commission some years ago.
WATER RATE COMPARABLES
To give readers an idea of how T or C’s water rates stack up with those charged by comparable cities, the Sun sought that data from New Mexico towns that are about the size as T or C and are similarly located far from a larger municipality.
Our pool included Aztec, Raton, Taos and Tucumcari. None of those cities publishes its water rates on its website. Taos said the Sun would be required to submit an Inspection of Public Records Act request in order to obtain its rates, delaying for possibly as many as 15 days the publication of this article. Aztec did not respond to the Sun’s request for information. Tucumcari provided its residential rates over the phone, but did not follow through on a promise to email the commercial rates by press time.
As it turns out, T or C’s monthly water rates are lower than Tucumcari’s and Raton’s. Let’s say that that the average American family of four uses around 10,500 gallons of water in a 30-day period, the estimate provided by the U.S. Environmental Protection Agency, in the “Watersense” section of its website. Using that measure of consumption, the total monthly water bill for an average family of four would run $32.50 in T or C, $39.34 in Raton and $61.47 in Tucumcari.
T OR C’S PAST AND NEW RATES
The base fee charged the city’s water utility customers prior to the passage of Ordinance 712 was $8.15 a month. The rate hike that went into effect in July 2020 increased the base fee to $15.50 a month, covering consumption of up to 2,000 gallons.
T or C’s current water rates, effective with the September billing, are:
Residential and Commercial
$16.34 base fee, covering consumption of up to 2,000 gallons
2,001 to 7,000 gallons: $2.86 per 1,000 gallons (up from $2.71)
7,001 to 15,000 gallons: $3.24 per 1,000 gallons (up from $3.07)
15,001 to 29,000 gallons: $3.64 per 1,000 gallons (up from $3.45)
29,001 to 50,000 gallons: $4.09 per 1,000 gallons (up from $3.88)
Over 50,000 gallons: $4.56 per 1,000 gallons (up from $4.33)
TUCUMCARI
Residential
$22.19 base fee, which includes tax and consumption of up to 2,000 gallons
2,001 to 6,000 gallons: $4.51 per 1,000 gallons
6,001 to 10,000 gallons: $4.61 per 1,000 gallons
10,001 to 20,000 gallons: $4.72 per 1,000 gallons
20,001 to 50,000 gallons: $4.85 per 1,000 gallons
50,001 gallons and above: $4.95 per 1,000 gallons
RATON
“Municipal residential”
$13.75 per meter
0 to 25,000 gallons: $2.438 per 1,000 gallons
25,001 gallons and above: $2.841 per 1,000 gallons
“Rural residential and agriculture”
$14.55 per meter
0 to 25,000 gallons: $4.50 per 1,000 gallons
25,001 gallons and above: $4.904 per 1,000 gallons
“Urban commercial”
$15.85 per meter
$3.32 per 1,000 gallons
“Urban commercial/multi-dwelling”
$15.85 per meter
$8.75 per unit
$3.32 per 1,000 gallons
“Rural commercial”
$15.85 per meter
$4.893 per 1,000 gallons
“Rural commercial/multi-dwelling”
$15.85 per meter
$8.75 per unit
$4.893 per 1,000 gallons