Killeen council approves water, sewer rate increases and expands sewer‑line warranty charge

The Killeen City Council voted 7–0 on Sept. 2 to approve ordinance amendments to Chapter 30 of the city code that will raise residential and commercial water rates and increase the city’s sewer‑service‑line warranty charge. City staff said the change is part of a phased five‑year rate plan and an updated five‑year budgeting approach intended to cover rising purchase and infrastructure costs.

Utilities staff and the city’s water manager presented the rate adjustments as phase 4 of a five‑year plan approved earlier. Assistant/Director Ramos explained the increases would generate additional revenue: “Phase 4 of the 5 year commercial rate water rate increase will generate approximately a $175,000 in new revenue. The 50¢ increase to the residential water base rate, would generate about 330,000.” City staff said the average residential customer using about 5,700 gallons per month will see their typical combined bill rise from $93.75 to about $97.67 under the new schedule.

The council also approved a revised agreement with Utility Service Partners (doing business as Service Line Warranties of America) to continue an outsourced repair/warranty program for lateral sewer lines in the public right of way. Public works staff described the warranty program’s mechanics: when a homeowner reports a lateral problem within the right of way, the city verifies location and USP dispatches a plumber, generally within two hours, to effect repairs. Reynolds said the program has averaged about 172 claims per year and that the warranty company has expended roughly $4.2 million to date. Under the new contract staff recommended, the monthly residential fee would increase from $0.50 to $1.33; staff said the change is projected to cover the program’s costs over a new five‑year term with an annual escalation up to 4%.

Public commenters strongly objected to the rate and warranty fee increases. Melissa Brown said increases disproportionately affect renters and urged the council to limit increases. Another commenter asked for additional transparency about where tax and utility revenues are spent. Council members who supported the measures noted the city faces rising purchased‑water costs from WCID and aging infrastructure that requires maintenance. The council adopted the ordinance amending Chapter 30 (PH25051) and authorized the USP agreement amendment (RS25142) in recorded votes.