McAllen utility proposes $183 million groundwater desalination plan; proposes $2.25 per 1,000-gallon rate to fund most debt service

Mark [last name not specified], general manager for McAllen Public Utility (MPU), told the McAllen City Commission at a workshop that MPU will propose raising the water commodity rate to $2.25 per 1,000 gallons to fund most of a proposed groundwater desalination project and related capital work.

"We will be proposing $2.25 a thousand," Mark said, summarizing the recommendation the utility intends to present to the Public Utility Board next week. He said about 80% of the cost of the project would be covered by the proposed rate increase as planned debt service, and that MPU will aggressively pursue grants to reduce borrowing needs.

Why this matters: MPU says the project aims to diversify McAllen's supply away from sole reliance on Rio Grande deliveries after persistent low reservoir levels and worsening source-water quality. Mark presented reservoir and water-quality data showing both Amistad and Falcon reservoirs running unusually low (presenter cited roughly 25–30% for Amistad and about 15% for Falcon at the time of the briefing) and described higher salinity reaching the city's intake from the upstream…