Although the city of Lampasas is increasing water and wastewater rates, as well as one component of the electric rate, customers may experience a slight decrease in electric bills.

The Lampasas City Council last week voted 6-0, with member John Cole absent, to increase the monthly base rate for water and wastewater by 25 cents and to add 15 cents per 1,000 gallons to the usage charge. As a result of the rate hikes, the average water and wastewater bill will increase by $2.49 a month, City Manager Michael Stoldt said.

A net reduction in the electric rate, however, means customers' overall utility bills could decrease, the city manager said. Although the City Council voted 6-0 to raise Lampasas' distribution energy rate by one-tenth of a cent, the purchased power cost adjustment will decline by four-tenths of a cent in September and October as a result of decreased fuel prices.

Consequently, the average electric bill will be lowered by $3.33 a month, Stoldt said. With the water/ wastewater rate increase and the electric rate changes, the average total utility bill for city customers will decline by $0.84 per month.

In another item, the City Council awarded a bid of $122,615 to Lupe Rubio Construction Inc. of Kingsland to stabilize the banks of Sulphur Creek behind Pecan Creek Apartments, located east of Western Street. Lupe Rubio Construction's bid was nearly $122,000 lower than the next-best bid.

Because the bank stabilization work will not exhaust the $350,000 in disaster relief funds the city has received, the council authorized grant manager Langford Community Management Inc. to submit a contract amendment. The change will allow the remainder of grant funds to be allocated for reconstruction of Sulphur Creek retaining walls within W.M. Brook Park.

The council also authorized the submission of a contract amendment for a 2008 Community Development Block Grant wastewater project being constructed south of Central Texas Expressway near Main and Chestnut streets.

Because the project is under budget, the city will use the remaining grant funds to expand the project. A bore will be installed under Central Texas Expressway, and a 10- inch wastewater main will extend south to Sulphur Creek, where it will tie in to an existing 15-inch wastewater interceptor.

Also at the recent meeting, the City Council agreed for the city to share with Grace Fellowship the cost of bores across the church's property. The city will pay $8,440 for a 12-inch encased water line bore, and Grace Fellowship will pay $7,916 for an eight-inch wastewater line bore.

The cost-sharing agreement corrected an error that Public Works Director Randy Clark said he made during discussions with Grace Fellowship staff. Based on his conversations with a church official, Clark said Grace Fellowship staff believed they could receive a bore under the church's paved drive, instead of an "open cut," for no additional cost.

The church had agreed to join the Lampasas High School water and wastewater line project, and to pay both for the extension of lines across church property and for associated engineering costs. Although church officials expected to receive credit for cost reductions when some bores were eliminated from the high school project, those credits went only to the city and to the Lampasas Independent School District, Clark said.

"I feel that I made a mistake and led [Grace Fellowship staff] to think [they] would get credited for some of the bores to offset the additional bores on church property," Clark said in an agenda item summary statement he gave the City Council.

In addition, the council:

• voted 6-0 to approve a 2010 budget for the Lampasas Central Appraisal District.

The budget includes a health care increase of $4,000, compared to the current budget, and total pay raises of $8,826 among the appraisal district's six employees.

• approved the appointment of Councilman Evan Stubbs to the Golf Course Advisory Board.

• voted to allow the Lampasas County Chamber of Commerce to hold the annual Historic Firehouse Run Biker Rally from Oct. 16-18 at Brook Park.

In addition, Assistant City Manager Stacy Brack noted that a draft annexation schedule will be presented during the first City Council meeting in October.