During a recent council meeting in Port Arthur, discussions centered around proposed water rate adjustments and the implications for both residential and commercial customers. The council reviewed an ordinance that differentiates water rates based on location—inside or outside city limits—and type of use—residential versus commercial. The current proposal includes a potential increase to 8.5%, which would generate approximately $30 million, while a lower rate of 7.5% would yield around $25 million.

Council members expressed the need for a comprehensive rate study to better assess the impact of these rates on various sectors, particularly industrial users located outside city limits, who have the right to protest any rate changes. The council acknowledged that the last rate study was conducted in 2019 and deemed it necessary to revisit this analysis to ensure fair distribution of costs among residents and businesses.

Despite the discussions, the council ultimately voted against the proposed rate increase, with the measure failing to pass. The council plans to reconvene for a workshop on the 17th to further discuss the budget and finalize decisions regarding the utility rates. The urgency of these discussions is underscored by the need to establish a budget for the utilities department promptly.