An ordinance amending Section 3 - Service Charges of the Water and Sewer Policy and Procedure Manual as contained in the Code of Ordinances, to implement updated base and volumetric rates

Staff Report & Agenda Item Details

First Reading and Public Hearing City operating costs are established annually as part of the budget process, and the Fiscal Year 2027 proposed Utility Fund budget was presented to the City Council during the Worksession on August 4, 2026. The FY 2027 water and wastewater base rates have been calculated based on the revenue necessary to cover the proposed FY 2027 operating costs. On November 15, 2016, the City Council approved Ordinance O-16-1996, implementing the recommendations of the Water and Wastewater Rate Advisory Committee. This ordinance established a new rate structure in which City operating costs are recovered through base rates and volumetric rates are set to pass through the costs charged by the Trinity River Authority (TRA). The base and volumetric rates are reviewed and updated on an annual basis. The new base rates are reflected in the bills sent out in October to coincide with the City's fiscal year, while the new volumetric rates are reflected in the bills sent out in January to coincide with TRA's rate change. Staff recommends the following rate adjustments to fund the FY 2027 operating budget. The proposed water rate changes represent a total monthly base rate increase of $2.48, or 13.6%, for customers with a 1" meter and smaller (the majority of the City's residential base). Other increases include a $4.96 increase (+13.6%) for customers with a 1.5" meter, a $7.94 increase (+13.6%) for customers with a 2" meter, a $14.88 increase (+13.6%) for customers with a 3" meter, and a $24.80 increase (+13.6%) for customers with a 4" meter. A proposed increase to the water volumetric rate from $6.6587 to $7.0011. In addition to water rates, the wastewater base rates will also see adjustments, with a $2.59 increase (+16.7%) for residential customers and a $2.59 increase (+12.1%) for nonresidential customers. There is no change proposed to the Capital Project Rate. The proposed increase to the wastewater volumetric rate from $4.7853 to $4.8044. The attached

This motion is scored as EXPANDS_GOVERNMENT (Impact Weight: 7.2/10). Under the Bastiat Liberty Watchdog Index, measures that increase tax rates or fee schedules, issue new debt or Certificates of Obligation, expand regulatory/zoning restrictions on private land use, or authorize unbudgeted spending expansions reduce an official's Freedom Score when voted YES (and reward dissenting NO votes).