City water and wastewater staff presented an operational outlook and a proposed rate plan on Aug. 16, citing aging plants, deferred maintenance, inflow and infiltration (I&I) challenges and significant projected wholesale water costs from the North Texas Municipal Water District (NTMWD).

Operational problems and staffing requests
Staff said Garland operates two wastewater plants with some components dating to the 1950s and 1960s, more than 1,800 miles of mains, and a workforce that has lost some institutional capacity to retirements and reorganization. To reduce contractor dependence and increase the city’s in‑house ability to perform hydrant and main repairs staff proposed: additional water construction crews, a crew specifically focused on I&I (four FTEs), two additional mechanics at key plants, hydro‑excavation equipment, a compact track loader and a mini excavator. Staff argued that in‑house capability can reduce unit costs (staff cited estimating a contractor hydrant replacement at $20–25K versus approximately $5K if done by city crews) and improve responsiveness.

Regulatory and wholesale costs
Staff warned that NTMWD wholesale water prices are forecast to rise substantially in coming years (staff cited projected increases of 7%–13% in some forecast years and a cumulative 56% increase over five years in wholesale costs). Wastewater regulatory drivers such as ammonia, total dissolved solids and emerging contaminants may require future plant upgrades if flows and permit limits change; staff said inflow and infiltration that raises peak flows could trigger permit and capacity work.

Proposed rates
The staff proposal called for a 4.8% water rate increase and a 4.2% wastewater increase for FY26, which together would raise the average residential water/sewer bill by about $4.57 per month (roughly 4.6% for the typical customer). Staff presented a five‑year rate forecast of roughly 4%–5% annual increases to maintain debt‑service coverage ratios, recover costs and preserve fund reserves. The presentation included a regional rate comparison, and staff noted some neighboring cities are proposing larger increases (some up to 9% or more) because of different wholesale or treatment arrangements.

Council questions and next steps
Council asked for a wastewater treatment‑plant master plan to analyze capacity, regulatory drivers and capital needs; staff said a master‑plan procurement is on the city’s near‑term schedule and will take about a year to complete. Council also asked for comparisons of bills charged to other cities that use Garland wastewater services; staff said they will provide those data in follow‑up.

Ending
No rate ordinance was adopted at the workshop; staff included the proposed rates in the FY26 packet and will return with the wastewater master‑plan procurement and supplementary comparative analysis.