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Rowlett council weighs water, sewer rate choices after bond rating warning
Summary
Council heard that Standard & Poor's flagged Rowlett's 'all‑in' debt coverage as pressured after the city absorbed rising wholesale water and treatment costs. Staff presented three rate scenarios and a $14 million water bond plan; council gave preliminary direction toward a middle option to shore up coverage.
City officials told the Rowlett City Council on July 12 that the city’s water and sewer finances have tightened after the City absorbed multi‑year wholesale price increases from the North Texas Municipal Water District and treatment cost increases from Garland. Finance staff said the rating agency Standard & Poor’s treats the District’s take‑or‑pay water charges as debt in its “all‑in debt service coverage” calculation; that metric slipped to about 1.12 for fiscal 2024 and, if left unaddressed, could put pressure on Rowlett’s double‑A‑ (AA‑) rating. Finance director Wendy (Finance director) briefed the council that the shortfall is driven mainly by large purchased‑service cost increases, principally…
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