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City outlines utility rate plan as water contract renewal and wastewater rehab loom
Summary
City staff told the council the utility fund will need incremental rate adjustments to cover rising raw-water costs when a long-term contract with the Sabine River Authority renews in 2027 and to fund an estimated $8 million wastewater plant rehabilitation.
City staff told the council Wednesday that the municipal utility fund will need modest, phased rate adjustments to prepare for a major jump in raw-water costs when the city’s long-standing contract with the Sabine River Authority renews in 2027 and to cover debt for a planned wastewater treatment plant rehabilitation. The presentation laid out how the utility fund operates like an enterprise business: water and sewer are charged as fees for service rather than taxes, revenues are driven by billed volumes, and the fund must carry assets and liabilities on a business-style statement. Staff said the city currently purchases the majority of its surface water from Lake Tawakoni under a long-term contract that was locked at a historically low 3¢ per thousand gallons;…
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