Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Utilities topic
No spam. Unsubscribe anytime.
Tomball proposes utility rate changes: 3% water base increases, 20% wastewater hike, gas held flat
Summary
City staff told council the enterprise (utility) fund has healthy reserves but noted a wet year reduced water sales. To maintain infrastructure programs and to begin contributing to debt service, staff proposed a 3% residential water increase and a 20% wastewater increase; natural gas rates were proposed to remain unchanged.
Lede: Tomball staff said the enterprise fund remains healthy but wetter weather cut water sales this year, and presented a utility rate plan that includes 3% increases for water base charges and a 20% increase for wastewater rates.
Nut graf: Staff described enterprise revenue volatility tied to weather-driven water demand, explained that the city's utility-rate study programs wastewater and solid-waste adjustments, and said utility contributions to debt service are part of the longer-term financing plan for capital projects.
Body: Presenting enterprise fund assumptions, David said staff budget conservatively for a wet year and noted current-year water sales were down: "About $900,000 less than anticipated revenues this year," which staff said was partially offset because regional pumpage fees are paid on volume pumped.
Staff asked the council to consider a utility-rate plan that would raise water base charges by about 3% across consumption tiers and increase wastewater by about 20%. The solid-waste contract includes a 5% contracted increase, staff said. Natural gas retail rates are proposed to remain flat; staff explained the city's purchase cost (around $4.75 to $5 per MCF in the presentation) still leaves room to hold customer prices steady.
Council members asked how North Harris County Regional Water Authority costs and surface-water tie-ins will affect the city; staff said the authority has signaled future increases and that any surface-water purchase would materially raise regional costs. Staff also said the utility fund is expected to begin participating in debt service in FY26, which is one reason utility-rate increases are in the plan.
Ending: Staff recommended the council adopt the utility-rate changes as part of the FY26 proposal and return for the formal rate-adoption and budget hearings in August. No formal action was taken at the workshop.
