Schertz residents may see an increase in their water bills because the city’s main supplier is hiking its rates again.

Schertz-Seguin Local Government Corporation, which is owned by the cities of Schertz and Seguin, is proposing an 8.7 percent increase in water rates to the cities effective Oct. 1.

The SSLGC board of directors approved the water rate hikes at its June 26 meeting. The Schertz rates, which will take effect Oct. 1, would go up from $2.18 to $2.37 per 1,000 gallons of water. In 2009, the rate would jump to $2.64 per 1,000 gallons.

SSLGC is able to pump and provide water for its customers because it has over 17,000 acres in property and leases in Gonzales County, which sits over the Carrizo Aquifer.

SSLGC general manager Alan Cockerell told the Schertz City Council July 1 the water rates were going up to cover increased costs in the corporation’s proposed $3.5 million fiscal year 2008-09 budget, which was also approved by the SSLGC board and takes effect Oct. 1.

Cockerell said the proposed rate hikes would pay for additional water leases in Gonzales County, where the corporation has applications for four additional wells, and is negotiating for further leases in Guadalupe County.

Councilman Tony Wilenchik said he was concerned that Schertz residents would have to absorb another increase in their water bills because SSLGC’s rates have increased by about 30 percent over the last three years.

“If our rates keep going up by 8 to12 percent a year, our people won’t be able to afford it,” Wilenchik said. “These are tremendous rate increases. Is there anything we can do to break that trend?”

Cockerell said as the corporation’s service area continues to grow and the costs for leasing and pumping water rights increases, he sees no immediate end to rising water rates.

Mayor Hal Baldwin said the high costs of bringing in water to Schertz have come about because of the area’s growing population needs.

“When we first planned this, we were looking at a population of 50,000 in 50 years,” Baldwin said. “Now we are looking at a population of 50,000 in 15 years. Our needs have grown faster than anticipated.”

Wilenchik asked if the corporation had any additional water rights from the Carrizo-Wilcox it could sell to offset some of the expenses it is passing on to customers.

Cockerell said SSLGC nearly reached its monthly capacity in June for pumping water out of the Carrizo Aquifer as permitted by the Gonzales County Underground Water Conservation District, which regulates usage of the aquifer.

“We don’t have additional water to sell,” Cockerell said.