During a recent government meeting, officials discussed significant changes to the Water and Sewer Fund, highlighting the rising costs of water and wastewater services. The council anticipates an increase of $9 million in revenues from water operations, while expenses are projected to rise by $1.1 million. A key factor driving these changes is a 5.7% rate increase from North Texas, which will affect the cost of treated water supplied to the city.

The council emphasized the importance of maintaining and upgrading aging infrastructure, including pump stations and water towers, to accommodate growth and ensure reliable service. They noted that water costs are expected to double over the next 10 to 15 years, prompting a strategic approach to rate increases. A planned 5% increase in water and wastewater rates over five years aims to provide stability for residents, with the current proposal reflecting an increase of just over $1 for water and approximately $0.55 for sewer services.

Concerns were raised about the impact of new residential developments on the budget. Over the past five years, the council has approved over 10,500 new homes, but officials clarified that the financial benefits from these developments may not be immediately realized. The city is still working to meet its total annual minimum water usage requirements, which affects overall revenue.

Additionally, the meeting addressed the rising costs of medical benefits for city employees. Proposed changes to the prescription drug plan are expected to save approximately $1 million annually, while modest increases in medical premiums for employees and retirees were also discussed. The council aims to balance the need for increased funding with the goal of minimizing the financial burden on residents and employees alike.

Overall, the discussions underscored the challenges of managing water costs and infrastructure needs while ensuring fair rates for residents in the face of rising expenses.