An inequity in the methodology of the city’s water service billing was discovered several months ago and the City Council has debated the best way to correct the problem. There have been discussions during work sessions and regular meetings and a public hearing was held in December. The meetings ended in changes of heart for some council members.
The city has been billing per ‘connection,’ which has resulted in apartment complexes with numerous units, which have only one connection per building, being grossly undercharged. Although apartment complexes account for 14 percent of the Garland Water Utilities consumption, the complexes account for only 6 percent of the revenue.
The conclusion was that multi-family complexes should be charged by the number of units, not the number of connections.
“The single-family homes in the city are subsidizing these apartment complexes.” Council Member Rich Aubin said. “I don’t see any reason to delay it [increase implementation]. To me this is a matter of equity about how we charge this stuff.”
The city sent letters in October explaining the need for a billing increase to establish a more equitable rate between single-family and multi-family dwellings. Apartment dwellers were told that their water bills would increase by $31.60 and the increase would be effective as of Jan. 1.
Council Member Robert Smith and Mayor Lori Dodson felt that the increase should be phased in gradually. The cost to the city, if the increase is phased in gradually would be $500,000 per month for every month that the increase was not implemented.
The vote was 5-4 to implement the increase as of Jan. 1.
Even though a vote was taken, the item was discussed again at the Dec. 17 work session.
Council Member David Gibbons said that if the increase had not been explained properly or that people hadn’t been given enough time to plan for the more expensive bill, he understood.
“To continue to ask our single-family [housing] residents to subsidize our multi-family [housing] residents just because five apartment complexes charge back those bills directly to those people, I’m not following this,” he said. “I just don’t quite understand.”
Council Member Deborah Morris said that there are many financially disadvantaged people in District 2 o she would prefer a two-part phase- in – effective March 1, 2019 and March 1, 2020.
Council Member Jim Bookhout said that single-family housing dwellers had been subsidizing multi-family housing dwellers for 15 years and he does not want it to continue any longer. He added that he had heard from his constituents and they want parity.
Changes in opinions were expressed after the Dec. 18 public hearing during which apartment dwellers, managers and developers spoke to council regarding the rate hike. Apartment dwellers added that the $31.60 increase was not a fair solution.
Morris and Council Member Jerry Nickerson agreed that a plan to phase in the increase gradually would be easier for multi-family housing residents. Dodson said that she had heard from an apartment complex manager that the per-unit method would raise the complex’s bill from $510 a month to $11,000. Another manager anticipates the new policy to cost about $90,000 more than in 2018.
“I think there’s a general agreement that pricing for apartments is outdated. I get that,” said Norm Bjornes, the developer of the 341-unit Oaks Fifth Street Crossing Apartments in downtown Garland.
He asked city representatives to meet with industry leaders to find a fair increase, whether it be per unit or by consumption rates. The Apartment Association of Greater Dallas also expressed opposition to the increase.
The council voted to delay the implementation by a 6-3 vote. Council Members Robert Vera, Aubin and Bookhout voted against the delay.
City staff will work to identify more options and present them at the Jan. 14 meeting.