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Water, Sewer, & Irrigation Rates
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The Town Council has adopted new water and wastewater rates beginning in 2019 and continuing for a five year period. The Council engaged the services of Capex Consulting to review current and projected revenues, expenses, and growth to formulate rates that would ensure healthy funds for the Town. Please review the rate presentation provided to the Town Council on November 12, 2018.
- State law requires that utility related revenues and expenditures are accounted for separately from other tax-supported funds. These utility fund accounts are considered enterprise funds, and the goal is that the revenues support related expenses without help from the other tax-related funds. In other words, we want our utility system to be self-supporting through revenues related to providing utility services.
- The model used in the presentation projects rate increases over the next five years. It is important to note that the proposed cost per thousand gallons continues to be LESS than the wholesale rate the Town is charged to purchase the same water provided. The Town purchases water from North Texas Municipal Water District at a rate of $2.97 per 1,000 gallons, a rate that most residential customers will not pay until 2023.
- The model also creates funding for water and wastewater line replacement. As the infrastructure in the ground ages, this allows the Council and Staff to take a more proactive approach at replacing these items.
- While the Council is sensitive to the burden of increasing rates, infrastructure failures can disrupt necessary services for days or weeks. The proposed rate structure allows for the issuance of $12 million in needed infrastructure costs. Approximately $6 million would be used to replace dilapidated sewer lines in the Harris addition, and water line replacements. Another $6 million would be used for the voter-approved project to allow us to switch to Dallas Water Utilities as our primary water source in 2027. This project would allow for the Town to utilize two water sources if needed.
- One option for residents to potentially save on their utility bills, would be to have an irrigation meter installed. See how this could help you save over the long-term. Town Staff can run an analysis on your account to calculate the expected savings before you have a second meter installed.
Rates effective January 1, 2019
- Ordinance 18-27 - Water/Sewer Rates (PDF)
- Are my rates going up next year?
- How much will my bill be?
- Why are my rates going up?
- What am I paying for each month?
- Why is wastewater the most expensive charge on my bill?
- How does the Town make sure rates are fair for each customer?
- Are rates higher in some parts of the Town than in others?
- Are the rates I pay being used to invest in the Town’s aging infrastructure?
- Who can I call if I have a question about my bill?