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Council approves 8.5% water and sewer rate increase on first reading to cover wholesale increases and debt service

5739664 · September 8, 2025
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Summary

On first reading the Sunnyvale Town Council approved an 8.5% increase in water and sewer rates to cover higher North Texas Municipal Water District charges and utility debt service tied to planned projects; council voted 6–0 to advance the ordinance.

The Sunnyvale Town Council on Sept. 8 approved on first reading an 8.5 percent increase to water and sewer rates, a measure staff said is needed to cover higher wholesale costs from the North Texas Municipal Water District and additional utility debt service tied to the town’s capital program.

Staff told council the increase was calculated to meet the town’s financial targets for its utility fund and to cover a roughly $1.2 million annual debt-service addition related to utility projects and relocations. Mikaela (staff) and finance staff presented multi-year projections showing an 8.5 percent increase proposed for the current year, followed by smaller increases in subsequent years as needed to keep the fund balanced.

Councilmember Clark asked whether the increase primarily reflects the wholesale cost change; staff confirmed it does. The measure passed on first reading with a unanimous 6–0 vote and was placed on the consent/first-reading calendar to return as a consent item at the next meeting for final adoption.

Ending: The ordinance will return for final consideration at the council’s next public meeting; staff said they will continue annual rate reviews and bring updated projections to council before any additional changes.