City Manager Proposes Rate Increases for Water Sewage and Solid Waste Services

During the recent Richardson City Council Work Session, significant discussions centered around the Water and Sewer Fund, highlighting the financial pressures facing the city and its residents. City Manager's report indicated a projected revenue increase of $6.5 million for the fiscal year 2026, bringing total revenues to approximately $119.9 million. This increase includes a recommended 6% rate hike for both water and sewer services, a decision made after careful consideration of the implications for residents.

The city is grappling with rising costs, including a 4% increase in wholesale water prices and a staggering 15.5% rise in sewer treatment costs. To mitigate the impact of these increases, the city plans to retain about $4 million in the fund balance, which will help reduce what could have been a 9% or 9.5% rate increase. This proactive approach aims to smooth out future rate adjustments and lessen the financial burden on residents.

In addition to water and sewer discussions, the council addressed the Solid Waste Services Fund, where collection fees account for 95% of revenues. A modest increase of $0.50 per month for residential rates is proposed, which includes a senior discount. This adjustment is expected to generate additional revenue while maintaining high service standards for residents.

The meeting also touched on the Golf Fund, which relies heavily on course operations for revenue, and the Hotel-Motel Fund, where tax revenues have seen a decline. The council is exploring ways to reverse this trend, particularly at the Iseman Center, which has experienced a drop in projected revenues due to adjusted programming.

Lastly, the council discussed the Drainage Fund, proposing a fee increase to support larger infrastructure projects. This increase is aimed at enabling the city to undertake significant drainage improvements without relying solely on bond programs.

Overall, the discussions reflect the city's commitment to addressing rising costs while striving to maintain essential services for its residents. The council's decisions will play a crucial role in shaping the financial landscape of Richardson in the coming years.