Del City staff outline steep two-year utility rate increases, new street and drainage fees during council discussion

Del City staff gave a detailed, discussion-only presentation proposing multi-year increases to water, sewer and sanitation rates, a new per-account street fee and several capital and drainage charges that city leaders say are needed to catch up on deferred maintenance and aging infrastructure.

The presentation, led by Britney (staff member), outlined a two-year plan under which the city would increase water rates by 50% in year one and another 31% in year two — a cumulative 96% rise on the water charge over two years — with the new rates proposed to take effect Jan. 1, 2026. Staff also proposed a $2.50 monthly street fee assessed to utility accounts, a change to two billing cycles (from four), and a 40-day “catch-up” billing period this fall to align accounts with the new schedule.

Why it matters: City staff said current rates are well below neighboring jurisdictions and do not cover rising costs for materials, fuel, labor and capital replacement. Officials said the increases are intended to fund preventive maintenance, major water- and sewer-system projects, traffic-signal and street-lamp upkeep, and sanitation equipment replacement rather than leave repairs to become emergencies.

"We are currently dealing with rising cost of materials, fuel, and labor," Britney told the council, adding that the city faces "aging infrastructure that needs replaced" and regulatory obligations from state and federal agencies. She said raising rates would allow the city to move from emergency repairs toward planned projects and capital budgeting.

Key proposals and financial details - Water rates: Staff proposed making the monthly base rate cover the first 2,000 gallons, then increase usage charges. The example provided showed a residential account (3,000 gallons) rising from a current $65.70 total bill to $82.79 in year one and to $89.16 in year two (including other fee changes). Britney described the 50%/31% step increases as a way to catch up after no water rate increases since February 2020. - Street fee: A $2.50 monthly fee per utility account, including accounts outside city limits, estimated to generate roughly $20,000 per month for street lighting, traffic-signal inspections/repairs and major resurfacing projects. - Capital outlay fees: Water, sewer and sanitation capital outlay accounts would be increased to fund large equipment and infrastructure investments. For sanitation, staff gave an example: a new commercial collection truck currently quotes at minimum $350,000. - Sanitation charges and penalties: The staff recommended reconsidering the missed-pickup (return) fee (currently $5 per cart) and noted landfill contract increases; staff suggested $10 per cart as a possible compromise. The monthly sanitation capital outlay example would rise from $1.50 to $2.10 (a 40% increase) under one proposal. - Drainage fee: Staff proposed $2 per quarter-acre to fund stormwater infrastructure, with discussion about whether to cap charges for very large properties and how to treat paved versus unpaved lots. - Billing-cycle changes: Staff recommended consolidating four billing cycles into two and implementing a 40-day billing cycle during October–December to reduce the current roughly six-week lag between meter reads and bill posting to about three weeks. Water usage for the 40-day period would be billed as actual usage; non-metered fees (sanitation, sewer, capital outlay, EMS) would be prorated for the additional days. - Roll-off (container) pricing: Staff said Del City’s roll-off container rental prices (examples given: $150 for a 20-yard container, $200 for a 30-yard container) are well below market and are losing money; staff suggested raising fees but emphasized a desire to keep the service affordable for residents.

Council and staff discussion Council members asked for comparisons to neighboring cities and more granular cost data. Britney said staff would provide comparative rate tables showing Midwest City and others and noted Midwest City had recently enacted large increases. She also told council that some neighboring cities use automatic annual increases tied to inflation or CPI for sewer or other utilities; Del City currently lacks an automatic escalation clause for water.

"We are very, very much behind," Britney said in response to a council question about neighboring communities’ increases. Council members and staff discussed options for automatic annual adjustments, with some support for using an inflation-based index as many cities do.

Staff emphasized implementation steps and public outreach. Britney said a campaign would be needed to explain changes to customers, and staff recommended engaging the city’s PR firm to communicate the changes in a 30-day timeframe once council provides direction.

No vote taken; next steps The council held the item as "discussion only" and did not adopt rates or fees. Council members asked staff to return with more comparative data, proposed wording for automatic adjustments, potential caps for large drainage charges, and a public-information plan. Staff proposed the new rates take effect Jan. 1, 2026, and said an October–December catch-up billing would precede that date if the council moves forward.

The discussion also touched on related Municipal Services Authority items the council planned to finish jointly, and staff noted the proposal would require follow-up ordinance or resolution language and a public-notification campaign before implementation.