If you live or work in Port Arthur, your water and sewer bill is going up.

The Port Arthur City Council OKed the creation of a new utility rates ordinance at a workshop on Tuesday afternoon at city hall. The ordinance is to be approved at the next Council meeting after the legal department draws it up and into effect.

Hani Tohme, director of water utilities, gave a presentation to the Council for three different options they could choose from. He said there’s a $1,655,298 deficit for transfer from the general fund to balance the budget for the 2018 adopted budget summary.

He estimates under these options the budget will be balanced and there would be enough money by the end of 2019 to pay the department’s bills so they will not rely solely on the general fund.

Under Option 1, the residential rate increase would be implemented on May 1. The current rate for a household based on 6,000-gallon usage is $55.64 per month; the proposed new rate would be $73.24. That amount would be $17.60 higher than the current bill.

Commercial and industrial rates would see a 25 percent increase to current rates effective May 1. Minimum usage fee is based on meter size.

Apartments, mobile homes, RV parks and townhouses will pay residential rate. Minimum usage fee/unit starts October 1.

Outside city limits rates will receive the same percentage increases.

Funds available for capital projects will be $1,438,384.

Under Option 2, there will be an increase to current rates in two phases — a 1/3 increase on May 1 and the remaining 2/3 increase on October 1.

For instance, a residence in Phase 1 based on 6000-gallon usage would have a bill of $61.51, $5.87 higher than the current bill.

For Phase 2 the bill would be $73.24, $17.60 higher than the current bill.

Commercial and industrial rates would see a 25 percent increase in two phases — 1/3 on May 1 and 2/3 on October 1.

No funds would be available for capital projects.

Under Option 3, residential rates would increase in two phases — half the rate increase on May 1 and the remaining half on October 1.

A residence in Phase 1 would have a bill of $64.44, $8.80 higher than the current bill. Phase 2 household bill would be $73.24.

Commercial and industrial rates would see a 25 percent increase in two phases — half on May 1 and half on October 1.

Funds available for capital projects would be $21,636.

The Council voted to go with Option 1.