Consider and take appropriate action on Ordinance O-19-26, an Ordinance of the City Council of the City of Kaufman, Texas, repealing Ordinance No. O-26-25 and amending Section A8.002, “Water Rates”, and Section A8.003, “Sewer Rates”, of Article A8.000, “Utilities”, of Appendix A, “Fee Schedule”, of the Code of Ordinances of the City of Kaufman to adopt increased rates for water and sewer services; providing for the incorporation of premises; providing amendments; providing a severability clause;

Staff Report & Agenda Item Details

This ordinance amends the existing retail and wholesale water rates for all water and sewer customers, increasing the existing water rate by 8.6%. This is the same increase that our wholesale rate will see from the North Texas Municipal Water District (NTMWD), our wholesale water provider. NTMWD justifies their increase to customers based on the following circumstances: • Maintaining aging infrastructure to ensure reliability; • Complying with increasing regulatory requirements; and • Constructing projects/infrastructure to keep up with growing needs and demands. In addition, last year, the City conducted a rate study to evaluate the water and sewer rates. Water utility rate studies provide transparency into what the utility fund can expect in the years ahead. It further helps ensure the City has the financial resources needed to meet the budget, maintain infrastructure, grow the distribution system, explore new technologies, and implement the capital improvement plan (CIP). The rate study recommended increasing both water and sewer rates for residential, commercial, public schools, multi-unit residential, multi-unit commercial, and senior accounts by 8.6%.

This motion is scored as RESTRAINS_GOVERNMENT (Impact Weight: 6.7/10). Under the Bastiat Liberty Watchdog Index, voting YES on measures that cap or reduce ad valorem tax burdens, expand taxpayer exemptions, retire debt early, enforce competitive bidding caps, or remove regulatory/zoning barriers to private property rights earns a positive Pro-Liberty score.