The City of Laredo is not approving any new industrial, commercial or residential development right now because its wastewater infrastructure is near capacity, Utilities Director Riazul Mia told City Council on Monday.

He said it is crucial that council approve an increase in water rates in order to pay for $180 million in capital improvements to the utilities system over the next 10 years.

"We cannot legally approve subdivisions without having capacity," Mia said.

He approached council during a strategic planning session in 2017 asking that they address this issue. Council authorized the city to hire a consultant to conduct a rate study.

In September 2018, consultant Dan Jackson, vice president of Willdan Financial Services, presented the results of the study during their budget workshop. No action was taken.