Council members also approved a resolution authorizing the city to apply for up to $90 million in financial assistance through the Texas Water Development Board’s Clean Water State Revolving Fund for improvements to the city’s water reclamation facility at 1898 City Farm Road.
The city submitted an initial project information form to the state in 2023, estimating the project would cost approximately $81.4 million for planning, design and construction. The Texas Water Development Board has invited the city to submit a full application for a low-interest loan, but the funding limit under the program’s fiscal 2024 plan is $59 million.
The city would need to identify other funding sources for at least $31 million of the project, according to the agenda packet.
The resolution allows city staff to complete and submit the application for up to $90 million. The loan’s principal and repayment terms have not yet been established, and submitting the application does not obligate the city to borrow the funds.
Small Rise in Stormwater Fees
San Angelo residents will see a modest increase in monthly stormwater fees after City Council approved a 5 percent rate increase during its Oct. 20 meeting.
Jeremy Miller, assistant director of operations, told council members that “the 5 percent increase is minimal for residential rates,” with most households expected to pay between 16 and 21 cents more per month.
“80 percent of the residences are going to fall within tiers 2 and 3, so you’re looking at a 16 to 21 cent increase per month on the storm water fee,” Miller said.
The increase is intended to offset rising operating and maintenance costs for the city’s stormwater fund. Council members expressed a desire during the fiscal year 2026-27 budget discussions to address those costs while minimizing the impact on customers. The 5 percent increase was approved during the September budget hearings, and the Oct. 20 action updated the rates in the city’s fee schedule.
According to Miller, the last stormwater fee increase was two years ago, when rates rose 3 percent to account for inflationary costs. The council approved the latest amendment unanimously.
Residential stormwater fees are based on impervious area, or surfaces that prevent rainwater from soaking into the ground, such as rooftops and pavement. Under the updated fee schedule, monthly residential rates range from $2.18 for properties with up to 1,000 square feet of impervious area to $5.46 for properties with more than 3,000 square feet.
Nonresidential rates also vary by impervious area, ranging from $8.19 per month for properties with up to 5,000 square feet to $546 for properties with more than 500,000 square feet.
Fire Department Expenditures
One approval authorizes the purchase of two Type-1 Demers ambulance units from Siddons-Martin Emergency Group for $885,442 through a Houston-Galveston Area Council purchasing contract. The purchase is funded through rolling debt bond proceeds and was included in the city’s capital budget.
The second approval authorizes a service agreement with US Digital Designs to maintain and service the Fire Station Alerting system. The initial one-year agreement costs $44,570.71, with the option to extend for four additional one-year terms and annual increases of 5 percent. The total cost over five years is projected at $246,281.32.
All three additional items were approved by the council.
