Council approves water base-rate change for rural customers, adopts 2026-’27 budget

Monday night, the Collinsville City Council voted to amend the water rates for customers living outside the city limits. The result is a 59.66% increase in the base rate for those outside-the-city customers. The council cited cost of business as the reason for the change.

Mayor Chase Guidera explained that in April or May, the city had a water audit that determined the city was essentially giving away free water and undercutting itself. The council took the advice of the presenter and, while water went up a couple of dollars, the sewer amounts were way off.

“During that time there was a conflict,” Mayor Guidera said. “One entity said we could not charge outside the city limits a different rate than in-town, another said we could. We took the safe approach and everyone that lived outside the city, their price got dropped down to what the city people were paying.”

Since then, everyone – in-city or out of city limits – has been paying the same base rate. However, the city has found an ordinance it passed in 1996 that allows the city to charge customers living outside the city limits a different rate. At this week’s meeting, the council was proposing to put everyone living outside the city limits back to the base rate they were paying prior to the change.

“So wherever you were say, April of 2025, whatever that water bill was, that base rate is what we’re discussing,” the mayor said.

The proposed base rate change equates to an increase of $20.10 per month. Then, water usage would be added on top of that. The city uses a tiered system – 1 to 5,000 gallons; 5,001 to 15,000 gallons; etc. For anyone in the first tier (using one to 5,000 gallons of water a month), the in-city rate is $3.94 per 1,000 gallons while the proposed outside rate would be $4.91. For the second tier, the in-city rate is $4.91 and outside would be $6.56.

The city currently has 1,225 water taps. Of those, 335 are outside the city limits.

When asked how the city came up with the price difference, the mayor explained the city has done price comparisons with other cities who also follow this practice. The proposed rate passed with a 4-1 vote, with Alderman Carl Lucas voting against.

Also at the meeting, the council approved:
• to issue requests for RFP and RFQ for a grant administered by the Texas Department of Agriculture to be used for street repairs (the $750,000 grant would be a $37,500 match by the city and would be a two-phase application)
• Collinsville EDC and IDC budgets
• to adopt a “Police Reserve Force” into the city’s Code of Ordinances and add it to the city’s organizational chart
• Julie Carney’s appointment to the Park Association Board of Directors and Michael Proffer, Carney and Kristy Parrott’s renewal to the IDC Board of Directors

The council also held a public hearing to discuss the proposed budget. Fire Chief Damon Stewart addressed the council to discuss his PRN budget, which had initially been cut in earlier talks. He explained that he was able to secure a grant to cover another area of his budget (PPE) and asked if $10,000 could be reallocated to the PRN budget. This budget would pay for emergency personnel on an as-needed basis to supplement the current department.

This shifting of money wouldn’t change the overall budget number, he explained; it would simply move money from one line item to another.

“If we cut that (PRN) funding, we cut the feet out from under me and my ability to provide the best service to our citizens,” he said. “We’re trying to build on something, not revert back to where we were two years ago.”

The council agreed that with the grant money to cover the PPE budget, money could be moved to cover the PRN cost.

The budget, which includes a tax rate of $0.664109 (up about seven cents from last year), was adopted unanimously.