Min 05/06/1958 242
Wichita Falls, Texas
Memorial Auditorium Bldg,
may 6, 1958
The Board of Aldermen of the City of Wichita Falls met in called session on the
above date
., in the Council Room of the Memorial Auditorium Bldg.., atn:o.o o'clock A.M.,
with the following members present:
K. C. Spell Mayor
Bill G. Hale
Stvjton M. Bonner
Kilam J. Vaughan Ald ermen
Joe Bailey 111eissner Jr.
Bill Thacker
Geo. T. Henderson City Clerk
H. A. Thomason City Manager
- - - - - - - - - -
Mayor K. C. Spell stated this meeting had been called for the purpose of
discussing various matters of importance to the City.
- - - - - - - - - -
Moved by Alderman Thacker that the Board of Aldermen does hereby approve and
adopt the Water Rate Schedule., as proposed by the City Manager, which reads, as follows:
"PROPOSED STUDY OF WATM RATES AM SCHEDULES
The first 5.,000 gallons of water 500 per thousand
Next 45.,000 It 350 it
Next 450.,000 It 300 to
Next 50OP000 it 9 250
Excess 1000,000 it d 22,,�
Minimum charge 3,,000 gallons of water 01.50 per month
Schools, Churches &
Charitable Institutions 9 22t,
This rate shall be applicable to all water users - residential, commercial., and
industrial.
Service outside the corporate limits shall be 11 times the rate inside the
corporate limits.
All water accounts shall be due monthly and must be paid within 15 days from the
Post Office cancellation date of statement. If not -paid by this date, a 10% penalty
will be added. The customer then shall have 15 days in which to pay the account
with penalty. At the expiration of this date., services will be discontinued and
will be restored only with the full payment of the account plus an additional charge
of $1.00 for disconnecting and restoring service fee.
That all utility customers shall be classified into unit and that a minimum
charge be placed on each separate unit, For instance, duplexes, apartment houses.,
efficiency apartments., garage apartments, or any building having more than one family
wherein a certain unit of living is maintained, even though tney are serviced from
one meter and on one sewer connection, To compute such a bill., the meter reading on
one meter shall be divided by the number of living units serviced, the above rate
units in
applied to this amount, then shall be multiplied again by the number of
order to get the net amount due for this one meter; It
as per copy of study attached hereto and made a part of the records hereof; the
effective billing date for the above and foregoing to be June 1, 1958.
Motion seconded by Alderman Hale.
Moved by Alderman Vaughan that the above and foregoing motion be and the same
is hereby tabled.
The motion died for want of a second, thereupon the original motion was put to
a vote., and carried by the following vote:
243
Yeas: Aldermen Hale.. Bonner, Meissner and Thacker.
Nays: Aldeman Vaughan. Aldeman Vaughan voted "Nay" on the motion to adopt
the four proposals of the City Manager and asked that his reason for such vote be reflected
in the official Minutes of the Special Called Session. These reasons were as follows:
1. The proposals have not been studied carefully enough to disclose their total
effect when enacted as ordinance,
2. Submission to four proposals in one ordinance denies Councilmen the right to
consider each upon its separate merits and voting accordingly. Such proceedure
introduces something new and unusual in the field of municipal legislation.
3. The proposals should be presented at a regular Council meeting, giving oppor-
tunity for a public hearing, as is usually provided for such legislation,
- - - - - - - - - -
Moved by Alderman Meissner that the City Manager be and he is authorized and
directed to employ the services of an Engineer for the purpose of making a survey of the
contemplated new Water Filtration Plant., and any other proposed projects in connection
therewith IJ
., and the City Manager be and he is hereby authorized and empowered to execute
a contract for the same for and on behalf of the City of Wichita Falls,-,,
Motion seconded by Alderman Thacker and carried.
- - - - - - - - - -
Moved by Alderman Hale that the meeting be adjourned.
Motion seconded by Alderman Meissner and carried.
The Board of Aldermen then adjourned.
APPROVED this the Z 2�day of 1958.
ATTES
ty Clerk
Honorable Mayor and Board of Aldermen:
I am submitting herewith a study of our water rates as requested by you at our
last regular meeting.
For your comparison I am showing the rate that is in effect last September and
projecting it on the same basis as the rate that we are presently using., together
with a proposed rate that shows a reduction from the present schedule. You will be
able to see from this study the average charges on certain consumers from all 3
schedules. Along with the proposed rate I would like to offer the following recomm-
endations to our water financial structure:
1. 1 have checked with the various utility companies in our City to find out
how many meter connections they have and have them compared with the City of
Wichlta Falls. I found that the electric company has 27.,919 meters, the
gas company 25,305., and our water department 23,127. Of the 27.,919 electric
meters very few of their accounts have 2 meters. It was suggested by our
electrical inspector that they should have at least 27,000 separate custo-
mers. In the 25,305 gas meters, they do have some meters that are serving
more that one customer., but these are few. The City of Wichita Falls has
had in the past a policy of serving all duplexes and apartment houses from
one meter at one rate. I am suggesting that a survey be made of our Qusto-
mers, and that each separate living unit be required to pay the minimum
charge on both water and sewer. This can be accomplished without causing the
property owner an additional cost by dividing the amount of water consumed
by the number of living units thereon and figuring the minimum charge on
this basis. We have figured several of these accounts in some places where
there were 18 apartments on one meter, one with 16., and one with 14, then
down to 4 and duplexes. It is our thinking that we would get approximately
3.,000 additional customers at an average cost increase of 750 per month
which would give us a net annual increase of approximately $27,,000. This is
not a new thought,, as it has been done in other communities.
2. 1 recommend that a 10% penalty be added to all delinquent accounts in the
same manner as the gas company. Heretofore the City of Wichita Falls has
been very lenient with our delinquent accounts wherein an account has been
carried 30 to 45 days before it was disconnected for non-payment and the
only cost that the customer incurred was a $1.00 reconnection charge. It
certainly is reasonable that a 10% penalty be added to all delinquent
accounts. The property owner will be given 10 days in which to make the pay-
ment as rendered., and then 15 days to pay with penalty before service is
dicontinued. I have no idea how much additional funds this would give us
but based on the present method of collection it would be very substantial.
However,, I feel sure that when the property owner knows of this policy.,
that more of our accounts will be paid before the delinquent date., thereby
giving us the use of our money in the month that it was billed. But there
would be a small percentage of these accounts that will have to pay the
penalty.
3. The City of Wichita Falls has for many years required deposits on water
meter connections. As far back as 20 years ago only $2.50 was required.
Some 10 years ago it was raised to $5.00 and recently was raised to $10.00.
Over the period of time we have accumulated $140,293-00 of customers de-
posits, this being the balance as of April 1. We always have paid 6% inter-
est on this money. The legal authorities say that the cities do not have
to pay interest on deposits because it is to secure payment of a final bill.
Therefore, I recommend that we discontinue our payment of interest on de-
posits which should net us between $8,000 or $9.,000 per year.
You can see from the schedules that our collections for the first 6
months of this fiscal year has been very little larger than for the same
6 months of the past year. Only 4 months of this period has had the new
rates in effect - October and November were figures on the old rates.
According to our budget figures,we have remaining to collect for the last 6
months, over $900,000. Our weather conditions certainly will be the factor in de-
termining how much of this will be collected. You also can see from study-Ing our
budget that we would end our year� if all this money was collected,, with a little
more surplus in our water department than we had at the beginning of the year. I
feel, therefore, that the new rate can be applicable to water used in our heavy
months., namely June., July, August, and September., together with the 3 other sugges-
tions, and still stay within our expenditures� but not into our anticipated balance
at the end of the year,
I have shown in these schedules the average cost per thousand on the old rate,
the present rate, and proposed rate up to one half million gallons. The figures
from there on will not be changed much on either of the 3 rates other than we have
stopped our rate at 220 rather than 200. The major change in this schedule has been
on the first 50POOO gallons which effects 75% of our customers. We find that appro-
ximatelY 5% of our customers never use more than the mimimum. charge; 8% of them have
the minimum charge except for the extreme hot months and then their bill does not
exceed $2.50.
The best estimate we are able to get is that the proposed rate would reduce
the present rate by $130,000 annually, leaving $170,000 above the old rate, or the
present rate would produce $170,,000 more annually that the rate in effect in Sept.
1957. Of the 3 suggestions that I had to offer, the cutting off of 6% interest
could be put into effect with this rate., also the 10% penalty could be added at the
time of this rate; however, it would take us several weeks to make our study of the
various living units, and we propose to make this effective October 1. According to
our calculation, revenues for the 4 summer months., namely June, July., August., and
September, would be cut approximately $60,000 from the present rate for the remain-
der of the year.
PRESENT RATE
The first 2,000 gallons of water @ $1.50
Next 3,000 @ 500 per thousand
Next 45.,000 @ 400 11 11
Next 100.'000 (9', 350 11 IT
Next 350.'000 9 300 f?
Next 500.1000 Co, 250 It
Excess 9 22� IT
Minimum charge $1.50
Schools., Churches
Charitable Institutions @ 220
This rate shall be applicable to all water users residential, comercial, and
industrial,,
Service outside the corporate limits shall be times the rate inside the
corporate limits.
All water bills shall, be due monthly upon the date stamped upon bills rendered
and must be paid at the office of the Utility Department 10 days after said time
and if not paid within said time, the water shall be shut off from such premises
and shall not be turned on again until said bill has been paid, including an addi—
tional charge of $1.00 for disconnecting and turning on again.
PROPOSED STUDY OF WATER RATES AND SCHEDULES
The first 5,000 gallons of water @ 500 per thousand
Next 45.,000 @ 350
Next 450,�000 @ 300
Next 500.,000 Ca, 250
Excess 1000,000 @ 220
Minimum charge 3,,000 gallons of water $1.50 per month
Schools, Churches &
Charitable Institutions @ 220
This rate shall be applicable to all water users — residential, commercial, and
industrial.
Service outside the corporate limits shall be 1-Z' times the rate inside the
corporate limits.
All water accounts shall be due monthly and must be paid within 1�days from the -
Post Office cancellation date of statement. If not paid by this date, a 10% penalty
will be added. The customer then shall have 15 days in which to pay the account
with penalty. At the expiration of this date, services will be discontinued and
will be restored only with the full payment of the account plus an additional charge
of $1.00 for disconnecting and restoring service fee.
That all utility customers shall be classified into unit and that a minimum
charge be placed on each separate unit. For instance, duplexes, apartment houses,
efficiency apartments, garage apartments, or any building having more than one family
wherein a certain unit of living is maintained, even though they are serviced from
one meter and on one sewer connection. To compute such a bill, the meter reading on
one meter shall be divided by the number of living units serviced, the above rate
ap lied to this amount, then shall be multiplied again by the number of units in
1p
order to get the net amount due for this one meter.
WATER RATES
IN EFFECT LAST SEPTEMBER
RATES: The following rates are hereby established and same shall be hereafter
collected by the lZater Department.
The minimum monthly bill for all flat metered water service shall be $1.50
for which amount each customer shall be allowed 4,000 gallons of water.
Next 61000 gallons, or less per month 3W per 1,000 gallons
20)000 It It It It 11 290 11 1,000 11
20,000 if It if If 11 28� 11 1,000 It
It 50.'000 11 11 it it 11 27� " 1,000 11
11 50)000 it If it it it 26� It 1,000 it
if 1509000 it if It if it 25� It 1,000 it
if 200,000 If It it if if 240 11 1,000 It
250.$000 11 if It 23� 11 1,000 11
2505000 If if It 22� 11 1,000 If
it 1,000,,000 & over it if 200 It 1,000 11
All water bills shall be due monthly upon the date stamped upon bills
rendered and must be paid at the office of the Water Department 10 days after said
time and if not paid within said time, the water shall be shut off from such premises
and shall not be turned on again until said bill has been paid, including an addi—
tional charge of $1.00 for disconnecting and turning on again.
A special rate was given to Sheppard Air Force Base wherein in excess of
2,000,000 gallons was 140 per 1,000 gallons.
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COLLECTIONS:
Month 1956 1957
October 158,147.98 136�,545-47
November 101,370-54 66)340-00
December 73,758-41 81�273.64
January 70,892-36 83,441-09
February 58,697-34 76,629.09
March 65,711.40 89,577.97
Total 528,578.03 533,807.26
CUSTOMERS DEPOSITS:
October 2,905.00 M60.00
November 1,960.00 2,850-00
December 1,570.00 2,825-00
January 2,410.00 4,075-00
February 1,805-00 3,100,00
March 2,255.00 3,365.00
Total 12,905-00 20,075-00
MISCELLANEOUS: (Taps,
October 4,367.27 4�16L66
November 3,,006.39 2,226.47
December 3,378-58 2,609.88
January 21P499.87 4.,042-71
February 2,325-09 2,371.32
March 5:076.87 2,885-17
Total 20,654-07 $ 18,297.21
Total All Revenue 562)137-10 � 572)179-47
WATER DEPARTMENT
REVENUE FRO14 ALL SOURCES
ACTUAL PROPOSED
1956-57 1957-58
Cash Balance $ 195 000 166 000
OPEIL-�TING REVENUE:
Sale of 'dater 1 200 000 1 500 000
Rent for use of Property 10 000 10 000
Customer's Installations 50 000 50 000
Penalties 1 coo 1 000
Total Operating Revenue $1 261 OCO $1 561 000
NON-OPERATING INTCO",TE:
Sale of Materials & Supplies 25 000 25 000
Services to Sanitation Dept. 10 000 12 000
Services to Sewer Dept. 6 000 6 000
Resale of Labor 10 000 10 000
Rent of Equipment 5 000 5 000
Oil Runs 2 000 2 000
Canal Maintenance 15 000 15 000
Unclassified Revenue 2 000 2 OCO
Total Non-Operating Income 75 000 77 000
Total Revenue $1 336 coo $1 638 000
Grand Total Revenue $1 531 000 $1 804 000
Year Water Pumped Rainfall
October 1956 335,530,000 4.91 in.
November 1956 209,060,000 '.94 in.
December 1956 239,540,000 1.81 in.
January 1957 227,524,000 481 in.
February 1957 191,240,000 3.08 in.
March 1957 200,817,000 3.19 in.
October 1957 271.V12O)OCO 3.66 in.
November 1957 220,013,000 6.22 in.
December 1957 227,665,000 .45 in.
January 1958 227,229,000 1.50 in.
February 1958 204,995oCOO .61 in.
March 1958 226,100)000 1.91 in.
WATER DEPARTMENT
SUMMARY OF EXPENDITURES BY DIVISION
ACCOUNT ACTUAL PROP03ED
NUMBER FUNCTIONAL CLASSIFICATION 1956-57 1957-58
200 Source of Supply 42 445 $ 43 951
201 Power and Pumping 58 650 64 550
202 Purification 176 OQ2 180 235
203 Transmission & Distribution 314 053 319 622
204 Customers Acct. & Collecting 92 31-2 103 391
205 Administrative & General -- 407 385 647 021
Total Operating Expense
and Capital Outlay $ 1 090 877 $ 1 358 770
206 Debt Service 155 590 158 801
Grand Total 1 246 467 $ 1 517 571