Kempner Water Supply Corp. will raise its minimum base water rate by $5 to help fund a new water treatment plant under construction.

Effective Nov. 1, KWSC's base rate will increase from $45 to $50. Customers will notice the increase for the first time on their December bills, KWSC General Manager David Sneed said. The usage fee will remain $2.80 per 1,000 gallons. "Currently there isn't anything in our future to change the usage fee," Sneed said.

Because the new water treatment facility was bid when oil prices were high, bids came in about $4.5 million above the budgeted amount, Sneed said. Also, because of changing patterns in Central Texas' population, Kempner's growth factor -- used to project potential new customers -- fell to 0.5 percent. For an extended period before bidding of the new plan, the growth figure had ranged from 2.9 percent to 4 percent, Sneed said.

"When that factor dropped to less than half a percent, our revenue stream dropped," the general manager said.

As a result, KWSC took out an additional loan and needs to generate $6 million beyond the amount originally designated for a treatment facility.

The rate increase will not change the price that city of Lampasas customers pay for their water, Sneed said, as the rate KWSC charges Lampasas is set by contract.

The new water treatment plant, expected to begin operation in May and function at full capacity in June or sometime thereafter, may decrease KWSC's treatment costs, Sneed said.

KWSC will treat all of its water itself, Sneed said, but Lampasas will continue to get water from Central Texas Water Supply Corp.

KWSC has held two public hearings about the rate increase.