IOWA PARK (KFDX/KJTL) — Iowa Park wholesale water customers are about to see an increase in their water rates soon.
Iowa Park City Manager Jerry Fleming announced Monday water rates for their wholesale customers like the City of Electra, Wichita Valley Water Supply Corporation, Horseshoe Bend Estates Homeowners Association and Iowa Park CISD will see increases starting in October.
“This particular year our rates are going up about 14%,” Fleming said. “Last year our rates went down about 14%. Well whatever our rates are we pass to our consumers so if our rates go down, their rates go down. This year our rates are going up so their rates are going up.”
This comes after the annual wholesale water cost of service and rate study done by the City of Wichita Falls. Iowa Park buys its water from Wichita Falls and to determine if the rates go up or down is based on the previous year’s consumption and the cost and the city’s official audit.
“If we over-recovered the rates would go down if it demonstrated we under-recovered then the rates would be increased,” Wichita Falls Director of Public Works Russell Schreiber said. “There’s typically always some fluctuation in the wholesale rates every year.”
Schreiber said although Iowa Park city officials buy water from Wichita Falls, Wichita Falls city officials do not determine what the rate increase should be.
“How they determine what their rates should be is entirely up to them,” Schreiber said. “Now, the cost of the wholesale water is certainly a component of that but it’s certainly not all that goes into how they set their rates.”
Fleming said usually they can tell how much they will spend on water rates.
“It’s predictable to a certain point,” Fleming said. “On the other hand, we can pretty accurately predict what our expenses are going to be for personnel, equipment, everything else. What we don’t know is what the water price is until Wichita Falls tells us.”
In this case, there was no rate increase from Wichita Falls. The increase for Iowa Park wholesale customers has everything to do with the recent study. So, with the new rate in place, Iowa park city officials can start planning the budget.
The new water rates will go into effect on October 1, 2019. Residents could also see an increase in their water rates but that rate is to be determined and will be discussed in the next four to six weeks.