New water rates for Fate residents will become effective on Dec. 19.
An ordinance setting the new rates was adopted at the Nov. 21 meeting of the Fate City Council.
Mayor Bill Broderick said customers using 11,000 gallons of water per month would see their water bills increase by $5.20.
Finance Director Viviann Leverington pointed out in a memo to the mayor, city council and city manager that the city contracted with Robert McLain of McLain Decision Support Systems in the spring of 2011 to perform a water and sewer rate study. The council voted in October to increase sewer rates, but not water rates.
McLain was asked to take another look at the city’s position because it had since undertaken another annual audit and had updated its financial reports.
Also, according to Leverington’s memo, the city’s cost of water purchases has increased due to extreme drought conditions.
The finance director added that at a recent council workshop, there was discussion involving a desire to increase reserves and the need to finance capital water projects from those reserves.