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Council approves multi-year water and wastewater rate increases, adds seniors discount (exhibit amended)

5793137 · August 20, 2025
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Summary

Council adopted an ordinance to raise water and wastewater rates in a multi-year plan and approved an amendment removing a 105%-of-median home-value qualifier from the proposed senior discount so the benefit applies to all senior homestead exemption recipients.

Farmers Branch city council voted to approve an ordinance updating water and wastewater fees that implements phased increases through 2030 and a new senior/disabled discount to be applied automatically for qualifying homestead exemptions. Council also amended the senior discount eligibility language to remove a proposed 105% median home-value qualifier, so the 10% discount will apply to qualifying seniors regardless of home value.

Public works director Ray Solarez summarized the enterprise’s revenue needs: wholesale water and wastewater treatment contracts have risen, and the system faces aging infrastructure, replacement of pump and lift stations and other capital needs. Staff recommended multi-year automatic increases to the water and wastewater components to align revenues with projected costs. The schedule presented included an initial 15% increase in the coming fiscal year with further staged increases through 2030.

Council members asked staff to clarify implementation and the consolidated impact on customer bills. City manager Ben Williamson and Director Solarez explained both potable water and wastewater rates will change; because both elements are increasing at similar percentages, the net consolidated bill effect will be approximately the same percentage listed for the water increase (staff estimated customers will experience about a 15% consolidated increase in year one). Solarez said the increases would be effective Oct. 1, 2025, with customers seeing changes on November bills.

The ordinance also included an automatic 10% discount for seniors and disabled property owners with the city homestead exemption; staff initially proposed limiting the discount to properties valued at no more than 105% of the city median market value. Council debated whether to qualify seniors by property value and voted to remove the 105% median-value language so that any senior homestead exemption recipient is eligible for the discount. Council members asked staff to ensure automatic application for residents with homestead exemptions and to provide a simple application path for renters or others who do not appear on the tax roll.

Council approved the ordinance (Ordinance No. 3956) as amended; staff will implement billing changes, public outreach by utility bill insert, website and social media, and automatic application of discounts based on tax-roll exemptions where possible. The council directed staff to continue outreach and to monitor impacts on residents.