Liberty Hill consultants say water capital needs and growth could require about 9% annual rate increases

Liberty Hill — Consultants from HDR told the City Council on Tuesday evening that planned water-supply and storage projects and assumed customer growth would more than double the city’s water expenses by fiscal year 2029, and that the city would likely need roughly a 9% annual rate increase over the planning period unless project timing or funding changed.

Grady Reid, a consultant with HDR Consultants, told council members the city’s current water budget is about $3.6 million and that modeled expenses rise to about $8.4 million by 2029, driven largely by new debt for major projects. “Most of that is being driven by debt service cost,” Reid said. He listed two large planned projects as primary drivers: a Butler Farms elevated storage tank (estimated at $21,600,000 in 2026) and the Seward Junction Loop (estimated at $19,000,000 in 2028). Together, HDR’s project list shows just over $64,000,000 in water projects over the next five years.

Reid said HDR is modeling residential consumption at about 5,500 gallons per month and assumed 1,840 connections currently. The firm…