Tulsa staff outline stormwater 12% increase and water/sewer rate changes; median household bill to rise about $2.30

City staff presented the Budget Committee with an update on stormwater, water and sewer funding needs and proposed rate increases driven by an asset-management program and rising construction costs.

Staff described the Utility Enterprise Initiative (UEI) and an asset-management approach that layers condition assessments, a risk score and a capital-prioritization framework. Agency leaders said the city is working to expand in-house stormwater operations, add underground- and surface-assets staff and increase cash funding for capital projects to slow infrastructure decline.

Stormwater and staffing

Staff said a pending stormwater charge increase of 12% would generate roughly $4.1 million in full-year revenue in 2026 and equates to about $1.47 per month for the typical customer (approximately 5 cents per day). "The increase is gonna be 12%," a staff speaker said while reviewing the Black & Veatch study recommendations and the 12-year plan for stormwater.

Presenters said stormwater faces a capital shortfall: staff cited a $2 billion estimate of potential master-drainage projects across the city while the annual capital program is about $15 million. Staff also said routine capital and debt together represent roughly 31% of the stormwater budget and recommended enlarging the capital program to address asset replacement needs.

Staffing additions include eight new positions this budget year split between underground asset operations and surface-assets crews (ditching, channel maintenance). A staff manager said the operations team responded to recent heavy rain events without field calls in one shift, attributing that to more proactive maintenance.

Water and sewer: asset management and costs

Staff reiterated the UEI focus for water and sewer: better inventory, risk scoring and prioritized replacement so the city replaces the right pipelines at the right time. The presentation said unit construction costs have risen: the speaker gave an example where the cost to replace a mile of 6-inch water main rose from under $700,000 previously to about $1.2 million now, driven by inflation and supply-chain factors.

On household impacts, staff said the combined median household water and sewer increase will be about $2.30 per month (about $1.31 for water and $0.99 for sewer). Staff provided a combined-utilities example showing an estimated overall increase of about $4.70 per month for a median customer when stormwater and the proposed trash changes are included.

Known defects and capital backlog

Staff reported there are about 2,000 known defects in the sewer collection system identified by pipe-inspection cameras; contractors's average cost to repair a single defect in a backyard was cited at about $30,000. Staff said wet-weather and dry-weather overflows have trended downward even as rainfall varies, which staff credited to investments made over the past decade.

Staff also described new GIS-based dashboards showing drainage basins, 311-reported projects and project prioritization tools to help council members and the public track needs, and staff identified specific locations of concern such as the 40th & Sheridan area and Elwood facilities where funding and grants are being evaluated.

Ending

No formal vote on rates occurred during the committee meeting. Staff said the rate models produce the revenue need and that council direction will be required to balance service risk and affordability. Staff said they will return with additional detail and outreach materials, including sample bill graphics, and that final rate ordinances will come back to council for action.