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Utility and Gas Rate Change
St. James Parish Council Approves Necessary Increase in Water and Gas Rates to Secure Safe Drinking Water and Future Infrastructure
After thorough consideration and multiple public hearings, on August 27th, 2024, the St. James Parish Council unanimously approved a crucial increase in water and gas rates. This decision ensures the continuation of safe drinking water and facilitates future infrastructure improvements essential for the parish’s growth and sustainability.
The increase in water and gas rates is a necessary step to maintain eligibility for vital grants that fund infrastructure improvements. Without this increase, the parish would face significant challenges in sustaining its water system and other critical infrastructure projects. The council reviewed four ordinances to explore various revenue enhancement options and decided on phasing in the rate increases to balance affordability and necessary funding. The council voted to raise the rate to $18.50 per month, down from the initially proposed $20, to ease the impact on residents. The per unit fee will increase from $3.00 to $4.00 per 1,000 gallons.
The first phase of the new rates for residents will take effect on January 1, 2025. Phased increases will occur quarterly throughout 2025.
Rates for small business, commercial, and industrial users will also be increasing. The per unit fee for small businesses will increase from $3.00 to $4.00 per 1,000 gallons, and the flat rate will mirror residential prices, increasing to $18.50 by October 1, 2025. The commercial unit rate will increase from $3.25 to $4.25 per 1,000 gallons by October 1, 2025, and the commercial flat rate will increase from $34.50 to $36.50. The Industrial unit rate will increase from $4.00 to $4.25 per 1,000 gallons by October 1, 2025, and the flat rate will increase from $200 to $211.60.
Operations Director Rick Webre highlighted the urgent need for increased funding, citing inflation and the rising costs of infrastructure. For instance, a water clarifier that cost $800,000 in 1998 now costs $4 million. Historically, the parish has absorbed costs far exceeding the revenue from tapping fees.
The new rates will be linked to a Consumer Price Index (CPI), ensuring they remain competitive and reflective of current market conditions. If the rates had been CPI-linked when they were initially set, they would align closely with the new rates, and infrastructure improvements would have been better funded.
To address staffing challenges and improve billing accuracy, the parish will begin installing automated water meters, which are partially funded by an existing grant. These meters will provide precise readings, detect leaks, and eliminate the need for estimated bills. A successful pilot program of 70 homes in Magnolia Gardens demonstrated significant benefits, including leak detection. In two years, it flagged half a dozen leaks and the Parish was able to alert residents, meaning the issue was resolved and residents saved money. The installation of automated meters is expected to take one to two years to complete.