Upper Trinity district plans water rate increases.
Flower Mound: Town points to proposed lake, which it opposes
Saturday, June 18, 2005 By KEVIN KRAUSE / The Dallas Morning News

The Upper Trinity Regional Water District's member cities can expect wholesale water rate increases over the next two years. The water supplier, which is proposing to build the controversial Lake Ralph Hall in Fannin County as a future water source, is scheduled to vote in September on a projected 15 percent increase in the demand charge for next fiscal year, an official confirmed Friday. A 5.8 percent increase in the demand charge is projected for the 2007 fiscal year.

Flower Mound officials say that would amount to a 52 percent increase since 2003, when Upper Trinity announced its intention to build Lake Ralph Hall, which is expected to cost more than $200 million. Flower Mound, which as the water district's largest customer could end up paying a majority of the cost, opposes the lake, saying it's too costly and unneeded. Upper Trinity officials say the lake must be considered as a future water supply for the growing region.
Flower Mound spokesman Randy Evans said residents' water bills could increase as a result of the projected increases in wholesale water rates. The town has commissioned a study of the effects of the proposed water rates and will wait for the findings before "proceeding further," he said.

Upper Trinity's board already adopted a 5.5 percent increase in 2004 and an 18.4 percent increase this fiscal year, Flower Mound officials said. "These rate increases refute the district's recent claims that Lake Ralph Hall is only in the planning phase and that an investment decision has not been made," town officials said in a statement. A water district official disputed that, saying the proposed rate hikes are unrelated to the lake.

Bill Greenleaf, Upper Trinity's director of business services, said money from the rate increases will go toward expenses related to a new water treatment plant as well as for operating expenses such as fuel, chemicals and labor. Costs associated with the proposed lake will amount to about $2 per person per year, Mr. Greenleaf said. The district has so far spent about $1.5 million on the proposed lake, he said. "We're still in the planning process," he said.

In addition, he said increases in the demand charge would be partially offset by decreases in the volume charge. Water rates include demand and volume charges. Demand charges are based on fixed costs of providing water. The volume charge is based on how much water is actually used. "The more water you use, the less that rate increase will affect you," Mr. Greenleaf said.
The volume charge is proposed to decrease 8.9 percent in 2006 and decrease 5 percent in 2007, he said. Volume charges also decreased this year and last year, he said.

Upper Trinity provides water to Flower Mound and 17 other cities and towns, including Highland Village.