Link to: KLST News
Water Rate Formula
Base Rate = Fixed Rate for Water Usage
Per Thousand Rate = Variable Rate; Charges for water on a “per thousand” basis
The Base Rate is $40.00. Here’s how we got there.
Total Debt Service to be paid from the Water Fund is $856,000.
The City of Ballinger has approximately 1800 accounts.
When you divide the Debt Service by Number of Accounts you get: $39.63. Rounded up you get $40.00.
The “Per Thousand” rate is $7.80. Here’s how we got there.
The Total Budget for the Water Department is $ 2,280,894.90. When you subtract the debt service of $856,000 (See Above) you get $1,434,894. (This is your costs.) Last year, the Water Treatment Plant distributed approximately 182,500,000 gallons of water. (This is your volume).
What this means is it will cost the City of Ballinger $1,434,894 to produce approximately 182,500,000 gallons of water.
When you divide $1,434,894 by 182,500,000 (costs / volume), you get 0.0078. When multiplied by 1000, you get $7.80 per thousand.