September 26, 2024

Board of Directors

LCRA
P.O. Box 220
Austin, TX 78767

Re: Public Comment Regarding the Proposed Firm Water Rate Increase by LCRA

Dear Members of the LCRA Board,

I am writing to express my concerns about the proposed increase for firm water rates from $155 to $165 per acre-foot. While I understand the necessity of funding essential water projects, I urge LCRA to explore alternatives to this rate increase that would alleviate the burden on smaller communities like Lago Vista, particularly at a time when property taxes are already rising across Travis County. Below are a few alternatives I respectively ask you to consider and provide feedback on. While I understand you may ultimately determine none of these alternatives will work for the LCRA, it could provide assurance and transparency to citizens that all options were considered prior to a rate increase that could impact their bottom dollar.

Suggested Alternatives for Rate Structures:

1. Increased Rates on Larger Users: The LCRA could consider shifting a greater share of the rate increase to larger metro areas or commercial and industrial users, many of which have greater capacity to absorb higher costs.

2. State Assistance: Texas currently has a $30 billion surplus. The LCRA could engage with state officials to secure state funding for critical water infrastructure projects rather than placing the financial burden entirely on taxpayers.

3. Transparency and Accountability on Arbuckle Reservoir Costs: The Arbuckle Reservoir project, which has experienced significant delays and cost overruns, is a key concern. In March 2019, LCRA staff observed groundwater seepage that halted the filling of the reservoir, requiring a costly engineering fix in the form of a 125-175 foot deep subsurface cutoff wall. These errors have led to escalating costs, and it is unacceptable for these additional costs to be passed on to taxpayers. There should be full transparency on how much of the proposed rate increase will fund Arbuckle-related expenditures. Mistakes in engineering and planning should not result in higher costs for the communities who depend on LCRA's water supply.

4. Reevaluating Debt Service: LCRA’s debt service for FY 2025 is significant, with nearly $9 million allocated. Other water utilities have successfully restructured their debt to reduce rate pressures. For example, the Metropolitan Water District of Southern California restructured part of its long-term debt to lower annual payments, while Houston Public Works issued refunding bonds that lowered the interest on outstanding debt. LCRA could similarly consider refinancing or restructuring its existing debt to alleviate pressure on ratepayers.

5. Reserve Funds: Additionally, the LCRA has reserves that could be used to mitigate the need for an immediate rate increase. According to the FY 2025 business plan, the Rate Stabilization Fund and Agricultural Reserve Fund both hold millions in balance. These funds could be leveraged to offset part of the rate increase and allow time for more strategic planning.

There is precedent from other utilities in Texas and across the U.S. for larger metro areas and commercial/industrial users to bear a larger portion of water rate increases. For instance, the San Antonio Water System (SAWS) employs tiered pricing where higher water usage by industrial and commercial entities is priced at a premium, allowing smaller towns and residential users to pay lower rates. Similarly, Austin Water has structured its rates to ensure larger users carry more of the financial burden for major infrastructure projects. Incentives or exemptions are also common for smaller communities, especially those investing in their own infrastructure, allowing them to focus on funding critical local projects.

In Lago Vista, we are in the midst of planning for our increasing need to expand both our drinking and wastewater infrastructure in the face of reaching/exceeding 80% capacity. This rate increase puts further strain on our ability to plan and finance these projects. Exempting communities like ours from this increase, or at least providing a reduced rate, would enable us to continue these essential projects without compromising our budget.

In summary, I respectfully ask the LCRA to reconsider the proposed rate increase, particularly in light of these alternatives. Shifting the burden away from smaller communities, seeking state assistance, ensuring transparency around project costs, looking at your reserves, and exploring debt restructuring could provide a more equitable solution for funding critical water infrastructure.

Sincerely, 

<Insert Name>

<Insert City, Texas>

<Insert contact information if you want or delete this row>

Office of General Counsel

Texas Water Development Board

P.O. Box 13231

Austin, Texas 78711-3231

Subject: TWDB Proposed Rule Amendments to 363.2, 363.12, 363.13, 363.14, 363.17, 363.19, 363.33, and 363.41

Dear Mr. Harden,

In reviewing the proposed TWDB rules and considering their potential impact on smaller communities like Lago Vista, there are a few key points I would like to address, especially in the context of opportunities for financial assistance. I thank the Texas Water Development Board for their work to help ensure Texans have access to adequate, clean, and affordable water supplies. I appreciate the opportunity for the public to weigh in on these proposed rule changes and I look forward to working with you to continue advocating for smaller communities like Lago Vista. Please see my comments below:

1. Audit Requirement:

The proposed rule updates the requirement for audit submissions for applicants receiving financial assistance (Section 363.12). Specifically, it mandates an annual audit prepared by a certified public accountant unless an alternative accounting method is approved.

- Potential Concern: For small communities like Lago Vista, the cost of preparing a full audit by a CPA could be burdensome. While I support efforts to ensure fiscal responsibility, I urge TWDB to allow smaller communities the flexibility to submit their existing financial statements, as many small municipalities may lack the resources for a full audit by a CPA. An alternative approval method should be clearly outlined to reduce potential barriers for these communities.

2. Waiver of Rules:

Several sections allow the TWDB Board to waive or modify requirements (Sections 363.13, 363.14, 363.41). The specific language used is “The board may waive or modify the requirements of this section for any program or category of applications covered by this subchapter.” While this provides flexibility, the lack of clear criteria for when waivers or modifications might be granted can cause uncertainty and provide an argument for some of an unfair process if a waiver or modification leads to one applicant receiving assistance over another. 

- Potential Concern: Unclear waiver rules could lead to inconsistency in decision-making and disadvantage smaller towns. I request that the TWDB provide clear criteria for when and under what conditions the Board will waive or modify requirements. Small communities like ours, with limited resources, could be disproportionately impacted by such ambiguities, and clearer guidelines will help ensure fairness and transparency.

3. Risk-Based Review:

The proposed rules introduce a risk-based review method for items like engineering designs (Section 363.41). This could streamline processes for smaller communities, depending on how risk is defined and assessed. If this risk-based review benefits lower-risk projects, it could make the process easier for small towns that are working on less complex infrastructure improvements.

I support the introduction of a risk-based review process but request that TWDB clarify how risk will be assessed and whether smaller, lower-risk projects in communities like ours will benefit from streamlined approvals. This could greatly reduce the burden on small towns with limited resources.

4. General Complexity of Application Process:

The TWDB's rules propose certain requirements related to preliminary engineering reports, environmental assessments, and documentation (Sections 363.12 - 363.14). Complicated application processes disproportionately affect small communities. I ask that TWDB consider simplifying the application process for smaller communities near high-growth areas like Austin who are struggling to keep up with the growth incurred by the policies of a neighboring metro at record speeds. Complex requirements such as environmental assessments and detailed engineering reports can be a significant hurdle for small municipalities with limited staff and resources. Creating a specific section within these rules that streamlines support for such communities would enhance participation in these vital programs.

5. New Section for High-Growth Adjacent Communities:

I recommend the addition of a section within the TWDB rules that specifically prioritizes financial assistance for small communities near high-growth areas. These communities face unique infrastructure challenges due to rapid regional development, and targeted support would help ensure their continued access to essential water services. Communities like Lago Vista are seeing residential growth, but not commercial growth, and this burden is being placed on our property owners whose City Council is unable to affect the policies of a neighboring metro spurring that growth. 

By focusing on these key areas that would make TWDB funding more accessible and supportive of smaller communities like Lago Vista, I would fully support the proposed rule changes, and I thank you for your time and dedication to the citizens of Texas. 

Sincerely,

<Insert Name>

<Insert City, Texas>

<Insert contact information if you want or delete this row>

March 20, 2024

Re: TWDB Request for Comments on the Texas Water Fund

To the Texas Water Development Board (TWDB),

Thank you for the opportunity to provide public input on the implementation of the Texas Water Fund. I am writing to highlight the necessity for additional scoring criteria for municipal financial assistance applications, particularly for communities situated near rapidly expanding metro areas.

On March 14th, the US Census Bureau published a press release showing that from July 1, 2022 to July 1, 2023, Texas had 4 of the top 10 Metro Areas with the largest growth in the country. Dallas and Houston were numbers 1 and 2 on the list. Austin and San Antonio were numbers 7 and 9. Among counties with a population of 20,000 or more, Texas has 6 of the top 8 fastest growing counties in the country. 

Previously, the City of Lago Vista submitted a letter to your Board, and Lago Vista City Councilman Shane R. Saum provided public testimony at the previous board meeting advocating for consideration of additional scoring metrics for communities located near these high-growth metro areas that apply for financial assistance programs through the TWDB.  It is noteworthy that current scoring mechanisms include additional points for economically disadvantaged communities, amongst other additional criteria.

I propose that scoring should now also be awarded to communities under undue stress related to neighboring communities' unfettered growth. This adjustment would ensure that smaller municipalities with a population of less than 20,000 residents located near rapidly growing metro areas are equitably supported in their efforts to meet the burgeoning demands for water resources. The absence of these funding opportunities would significantly hinder the advancement of numerous large-scale infrastructure projects, either subjecting them to prolonged delays, increasing our bond debt, or jeopardizing their realization altogether.

Thank you for your attention to this matter, and I look forward to the TWDB’s continued dedication to promoting sustainable water management across our great state.

Sincerely,

<Insert Name>

<Insert City, Texas>

<Insert contact information if you want or delete this row>

NEWSLETTER

By: Councilman Shane R. Saum

Lago Vista City Council Place 1

Subscribe to Email Updates HERE

_______________________________________________

Local Preference Program Passed!

(February 17, 2024)

I am excited to share my first ordinance I drafted and had passed by City Council this week. I am proud to help support our local businesses by creating the Local Preference Program. Businesses in Lago Vista will now receive a slight edge when competing for city procurements, ensuring a fair playing field and encouraging their continued growth. 

Benefits of a local preference program:

• Stimulates Local Economy:

  • Encourages spending within the local community, fostering economic growth and circulation of money.

• Job Creation:

  • Supports the creation and retention of local jobs, contributing to lower unemployment rates and a more stable workforce.

• Tax Revenue Increase:

  • Boosts local tax revenues through increased business activity, providing additional funds for public services and infrastructure.

• Community Investment:

  • Promotes a sense of community pride and ownership as residents see local businesses thriving and contributing to the area's success.

• Fosters Innovation:

  • Encourages innovation and competitiveness among local businesses, as they strive to provide quality goods and services to secure procurement contracts.

• Reduces Dependency on External Markets:

  • Decreases reliance on external markets, making the local economy more resilient to external economic fluctuations and global market uncertainties.

• Better Understanding of Local Needs:

  • Local businesses often have a better understanding of the unique needs and challenges of the community, leading to more tailored and effective solutions.

• Enhances Social Fabric:

  • Reinforces community ties and social cohesion by strengthening relationships between local businesses and residents.

• Quality Control and Accountability:

  • Easier monitoring and enforcement of quality standards when dealing with local businesses, fostering accountability and ensuring the delivery of high-quality products and services.

• Attracts and Retains Talent:

  • Creates a vibrant and attractive local business environment, which can help attract and retain skilled professionals in the area.

• Positive Public Perception:

  • Builds a positive image for the city, as residents appreciate local policies that prioritize and support the growth of their own community.

My 2024 Resolution to Lago Vista

(December 31, 2023)

Dear Fellow Residents of Lago Vista,

As we stand on the cusp of a new year, I am filled with gratitude for the privilege of serving you as a City Council Member. It is both an honor and a responsibility that I take to heart, and as we embark on 2024, I want to share with you my New Year's resolution—a commitment to amplifying your voices and addressing the issues that matter most to our community.

Lago Vista is more than a collection of homes; it's a vibrant community, shaped by the dreams, concerns, and aspirations of its residents. As one of your representatives on the City Council, my foremost goal is to serve as a conduit for your wants and needs. I firmly believe that the strength of our city lies in the unity of its people, and your input is invaluable in steering our shared destiny.

In this spirit, my resolution for 2024 is centered around active engagement and responsiveness. I am not here to dictate, but rather to listen and advocate for the changes you wish to see. I recognize that as one of six council members and the Mayor, my role is collaborative, requiring consensus and shared vision. Together, we can create a community that reflects the values and priorities of each and every one of us.

In the coming year, I am eager to address key policy areas that I have identified based on your continued feedback and community needs. These include a commitment to increase transparency in our local government, working diligently to expand our water and road infrastructure, supporting our local businesses and enhancing the functionality of our City Council. These are not just my priorities—they are a reflection of the concerns I've heard from you, my fellow residents.

I understand the significance of community input, and I pledge to be a steadfast advocate for your concerns. While I am just one voice among the others on the City Council, I promise to tirelessly work towards consensus, ensuring that your collective wishes are at the forefront of our decision-making process.

As we embark on this journey into 2024, I invite you to actively participate in shaping the future of Lago Vista. Your engagement is the cornerstone of our success, and together, we can build a community that we are all proud to call home.

Thank you for entrusting me with the privilege of representing you. Here's to a year of collaboration, progress, and a stronger, more vibrant Lago Vista.

Warm regards,

Shane R. Saum

City Council Member Place 1

Transparency

Please take my Citizen Survey below so I can hear directly from you and on what issues are most important to you!

Citizen Survey Click Here

In my ongoing efforts to enhance transparency within the City of Lago Vista, I am committed to implementing innovative measures that promote open dialogue and collaboration. Recognizing the constraints posed by the Texas Open Meetings Act and its walking quorum provisions, I am proposing the establishment of an online message board in accordance with Section 501.006 of the Act. This platform will allow City Council members to openly discuss public policy and city agenda items, fostering a collaborative environment crucial for the development of well-informed and thoughtful decisions. All discussions on this board will be published on the City website, ensuring that our deliberations are part of the public record, promoting accountability and transparency in our decision-making processes.

Furthermore, I am dedicated to being more accessible to our residents. In addition to remaining available by email, phone, social media and by appointment, I am committed to holding at least one in-person event each month at a local business. This initiative aims to create a welcoming environment where citizens can comfortably share their opinions and concerns. I believe that face-to-face interactions are invaluable, and this commitment reflects my dedication to being physically present in our community, actively engaging with residents in a group setting to better understand their perspectives and address their needs.

Infrastructure

As our city embarks on significant infrastructure projects, such as the expansion of water infrastructure and road improvements, I want to ensure that our citizens remain actively involved in the planning and monitoring processes. I will explore and propose ways to facilitate public participation, keeping residents informed and engaged in shaping the future of Lago Vista. I would like to explore a program similar to this program (CLICK LINK HERE) which encourages ownership of roads by the citizens by involving them directly in the process of monitoring of  road construction through training, observing and reporting. Through these transparent initiatives, I aim to strengthen the bond between the City Council and our community, building trust and collectively working towards the betterment of our beloved city.

I will also advocate the City enter into a Water System Partnership with other Municipal water systems in the central Texas area to share training, resources and help during times of need. This is a growing practice across the country. According to the EPA:

 “Drinking water systems across the country face unique challenges to provide safe drinking water and operate often with limited resources. Specific issues with the water system’s technical, managerial, and financial (TMF) capacity could become a catalyst for beginning a water system partnership. Water system partnerships are a problem-solving and program enhancing tool to address the multi-faceted challenges water systems face. The impact of water system partnerships encompasses a broad range of issues and requires collaboration across a wide spectrum of stakeholders to address and provide solutions.  This increases the capacity and enables systems to sustainably provide safe and affordable water to their communities.” 

When I toured our water infrastructure this month I broached the idea of this concept and heard from staff that they had reached out to other communities to problem solve similar water systems. Formalizing this practice can have a great impact on our community and provide our staff extended resources they may not currently have. Additionally, the Texas Commission on Environmental Quality (TCEQ) grants the “Water Partners: Water Systems Helping Water Systems Award '' each year and I would love for a goal of Lago Vista to be to some day win that award or help a neighboring community win that award for helping us. 

Furthermore, the Legislature this year passed a bill to help get more high school students interested in careers in water and wastewater careers. Previously, students had to wait until their graduation to obtain a license. Under the new law, students who complete the required training and pass an exam are eligible for provisional licenses. Once the student turns 18 and receives a high school diploma or GED, they can obtain a permanent license. I would like to see the City opt into programs like this and others to ensure we have the workforce needed in the coming years, but to also give our local students an opportunity to stay and work in their community. 

Support Local Business

Supporting our local businesses is not just an economic strategy; it is a commitment to the heart and soul of our community. As a City Council member, I am dedicated to championing initiatives that foster the growth and prosperity of our local enterprises. One key proposal is the establishment of a local preference program within the city's procurement processes. This program would provide a valuable advantage to businesses rooted in Lago Vista, ensuring that our city spending contributes to the vitality of our local economy. Additionally, I aim to explore ways to streamline and support local businesses in our permitting processes. This could involve options such as pay-for-expedited-processing or providing additional educational resources to guide businesses through the intricacies of city regulations, fostering a more business-friendly environment. We all want to see Lago Vista characterized as a staunch “Pro-Business” city.  

Furthermore, I recognize the importance of seeking input from our local businesses on matters that directly impact them. To achieve this, I propose initiatives to actively engage with the business community, seeking their perspectives on issues like infrastructure development, tax policies, tourism strategies, and more. By establishing channels for open communication and collaboration, we can ensure that the City's decisions align with the needs and aspirations of our local entrepreneurs. Additionally, I aspire to explore creative ways to market and promote our local businesses, leveraging city resources to boost their visibility and contribute to their success. Together, these initiatives underscore my commitment to building a thriving local economy that benefits both businesses and residents alike.

Ensuring Sure City Council Works FOR YOU

Ensuring that the City Council works for you, the residents of Lago Vista, is a fundamental aspect of my commitment to transparent and responsive governance. One crucial step in this direction is addressing the accessibility of council meetings. It is imperative that citizens who wish to participate in local government have the opportunity to do so without the inconvenience of late-night sessions. I propose measures to prevent council meetings from extending too late on weeknights, recognizing that citizens should not be required to wait until midnight to express their comments. This initiative is part of my commitment to fostering an environment where community engagement is not only encouraged but made feasible for all.

Equally important is the need to ensure that agenda items are thoroughly and thoughtfully considered. Rushing through important decisions is counterproductive to good governance. To address this, I advocate for providing City Council members with adequate time to review background documents and ordinance drafts before they are posted to a public agenda. This ensures that our council members are well-prepared to deliberate on policy matters and hear from citizens effectively. Additionally, I am dedicated to reordering the sequence of meetings to prioritize citizens' comments and align with their schedules. This includes avoiding scheduling executive sessions on topics that the public deserves to hear about and, in my opinion, placing citizen comments ahead of executive sessions. Through these initiatives, I aim to create a City Council that truly serves the needs and interests of the residents it represents.

Happy New Year

In conclusion, I embark on the journey of 2024 with a profound sense of duty and commitment to the citizens of Lago Vista. While I am just one voice among seven on the City Council, I want to assure you that your needs and desires are at the forefront of my priorities. These resolutions to enhance transparency, support local businesses, and improve the efficiency of our City Council meetings are ambitious but essential for the betterment of our community. I recognize the weight of this elected position as a sacred honor, and I pledge to give my utmost effort to fulfill the responsibilities entrusted to me. Your input is invaluable in shaping the direction of our city, and I encourage you to continue informing me of your thoughts and concerns. Together, we can build a stronger, more vibrant Lago Vista that truly reflects the aspirations of its residents. Thank you for the trust you've placed in me, and I look forward to the collaborative efforts that lie ahead. Bring on 2024!

HAPPY NEW YEAR!

Email me @:

Shane.Saum@LagoVistaTexas.gov