City Council Faces Tough Decisions on Future Water Rates

In a recent government meeting, officials discussed the findings of a water and wastewater rate study presented by Matthew Garrett from Nugen Strategies and Solutions. The presentation highlighted the city's financial health regarding its water and wastewater services, emphasizing the need for ongoing evaluation of rates to ensure they cover rising costs and capital improvement needs.

Garrett noted that while the city has not raised water rates for several years, the rapid growth in the area has helped maintain financial stability. However, he cautioned that this growth is beginning to decline, which may necessitate future rate increases. Specifically, he projected a potential 7% increase in both water and wastewater rates from fiscal years 2026 to 2029, following a year without any rate hikes in fiscal 2025.

The presentation also addressed recent changes in wholesale water costs, including a 5% increase from the North Texas Municipal Water District, which translates to an additional $50,000 in expenses for the city. Conversely, a slight reduction in wastewater costs was anticipated due to increased consumption by neighboring Royce City.

Council members expressed concerns about the impact of a sudden 7% increase on residents' bills, with discussions suggesting the possibility of smaller, incremental increases to ease the financial burden. Garrett reassured the council that the city is closely monitoring expenses and revenues, aiming to maintain a conservative approach to financial projections.

The meeting concluded with a consensus on the importance of preparing for future rate adjustments while balancing the need to keep costs manageable for residents. The council plans to continue discussions on rate strategies as they navigate the complexities of rising operational costs and changing consumption patterns.