Need Advice! Massive increase to line item on water bill

Hello all,

I was hoping to garner some advice about an upcoming raise in city water rates in my 82 site RV park in Texas. The city has said that they will be raising the base rate for water which currently sits at $2.37 per lot to $21.50 per lot. They say this is because the park was audited in 2008 and the rate should have risen and didn’t, but there have been no other current audits. I’m going to contact the state RV Association for advice and possibly a municipal attorney, but it seems like fighting rates with the city will be an uphill battle. Any advice on handling the situation would be greatly appreciated.

If it were me, I would see what they have to say otherwise, and just roll with it. If they forgot to increase it, you have to be at the level of the city. But, maybe they can increase it to level in a way that would be less severe over a couple years for your residents, something like that. Sometimes negotiations can work, sometimes no. Can’t wait to see the answer :slight_smile:

Surprise you were under charged for your water !

We welcome the opportunity to work with MHP investors with their proposed purchases. Often their MHP is priced inappropriately due the current or projected water/sewer expenses:

  • Usually the water usage is extremely high, offering a quick value added solution through sub-metering;
  • Other cases the utility expenses are under stated due to billing errors;
  • Undercharging resulting from aging municipal meters not capturing the actual consumption;
  • In accurate home count or misapplied billing methodologies.

Even if the water/sewer billing is in your favor, better to you know what your future looks like.

“We’re here to answer your sub-metering questions”

just curious. Was this total increase supposed to be implemented in 2008 or are they planning an increase now and realizing someone screwed up?
I would at least ask to see the log of scheduled increases for the last 15 years, just because.
I am in a small town and have dealt with some “small town political issues”. They have tried to tell i am responsible for water lines outside my property, that run under the road and maybe half a mile through other properties before getting to “my meter”. They actually told me if i had a water leak and have to turn off the water that i have to climb a barb-wire fence, dodge “mrs. o’leary’s cows” to get to my meter shut off which is in the corner of her pasture.

I would first research the increases. Ask to see the tariffs and see if what they say is correct. If so, then you are the beneficiary of a mistake that they made a decade ago, and your benefit finally has come to an end. Assuming they are correct and that your rates will go up, analyze what you are currently charging your tenants versus the increase based on the new rates. Quite frankly to have a tenant pay $21.5 per lot for utilities is not a big deal. Most of our tenants pay much more than that.

Also, you have to determine if the $21.50 is actually allocated to a specific lot or if it is simply the rate leading to $1763 being billed to the whole park. Assuming the latter, you can meter the park if it makes sense and allocate the $1763 based on gallons used. You did not mention if there is a variable charge too, but if there is, having meters will help reduce the variable portion. However, for a $21.50 fixed per lot charge, it may be easier to just raise rent that much.

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