ANNA, Texas – In January 2008, when Anna ISD officials opened the water bill for the Anna High School campus, their water bill was $513.00, fast forward to January 2009 and the same bill opened more than doubled to $1,236.00".

When Anna's water and sewer base rates were increased effective on December 1, 2008, the vast majority of residential customers did not see an increase in their base water rate, because nearly all residential homes in Anna have a 3/4 inch water meter, and there was no change in rates for this size water meter.

According to Anna city officials, residential water customers account for 97% of all users. On the average, a residential customer uses 7,000 gallons of water per month, with 86% of water bills reflecting a water usage of less than 10,000 gallons per month. Since the December 1st rate increase most residential customers have seen a very modest, if any, increase in their monthly bill.

In a totally different set of statistics, the water and sewer rates for commercial customers which make up the remaining 3% of the customer base have skyrocketed.

Commercial customers typically use one inch or larger water meters, with a monthly usage, according to Sanders, from 33,000 to 34,000 gallons per month.

With the December 1st increase, a 1.00 inch water meter base rate went from $18.00 to $45.00; a 1.50 inch meter from $18.00 to $90.00; a 2.00 inch meter for $18.00 to $144.00; a 3.00 inch meter from $18.00 to $270.00, draining the pocketbooks of commercial customers.

Anna ISD, according to Director of Finance Scott Wortham, has some 13 commercial water meters, more than any other entity in the city, and the the sharp increase of the 13 monthly water bills they are paying, is now playing havoc with the AISD budget.

"Our older buildings have two inch meters", said Wortham. "The newer schools, Rattan and Bryant Elementary, have low flow/high flow one inch toan inch and a half meters, which help", continued Wortham. Our fiscal year runs from September 1st through August 31st", continued Wortham. "On an annualized basis we are now facing a $129,000 expenditure". This figure is much greater than what Anna ISD originally budgeted prior to the increase, and is now playing havoc with the budget.

"We're different from a typical commercial customer, a car wash, a washeteria or even a grocery store", said Wortham. "They can absorb an increase by adjusting their prices. We can't do that. We have already maxed out our tax rate".

According to Wortham, the ISD has been in discussions with City Administration since February. One thing that Anna ISD would like to see approved by the City council is a lower rate for institutional users like the Anna ISD.

When questioned at city hall, City Manager Philip Sanders explained the dilemma the city faces, "We were a small city that began to grow", said Sanders. "It was obvious that Anna could not continue to grow unless the city substantially invested in water and sewer distribution".

To a large degree, water rates at that time, were subsidized by new home construction. Each new home built, in addition to a permit fee, which varies based on the size and construction of the home, also was subject to a $4,000 impact fee paid by the builders. And during the new home construction boom years, thousands of homes were built in Anna filling city coffers with money for expanding the city's water and sewer system.

With the collapse of the new home industry the $4,000 impact fee money that the city was receiving simply dried up requiring a review and the December 1st water rate increase. "Our commercial water rates are not inconsistent with other communities", said Sanders. "We follow the conservation rate approach - the more you use, the more you pay", he added.

"A lower rate for publicly supported entities", is a possible option", commented Sanders. For now, "the city will keep the rates as low as we can keep them", said Sanders. As discussions continue between the city and Anna ISD, dollars not budgeted keep going down the drain at Anna High School and other campuses.