Consultant presents water and wastewater rate history; council told stormwater fee study will follow

A consultant and town staff presented a historical analysis of Flower Mound’s water and wastewater rates and outlined next steps, including an upcoming stormwater funding study.

NewGen Strategies’ consultant Chris Eckert told the council the town’s average residential monthly bill (15,000 gallons water; 8,000 gallons sewer) rose from about $123.61 in 2014 to roughly $174.43 in fiscal 2025, an average annual increase of about 3.18% over that span. Eckert said the town’s water costs are driven heavily by wholesale purchases from Upper Trinity Regional Water District (which account for roughly 58% of water utility costs) and by capital and debt expenses for infrastructure investments.

Key takeaways: The consultant emphasized three cost drivers: wholesale water expense, personnel (including salary increases and added staff), and capital/debt for infrastructure. The council heard that the town’s water reserve policy allowed a large transfer to the capital fund after a strong fiscal year, and the consultant said the town’s debt‑service coverage and reserve levels generally meet industry targets.

Stormwater and next steps: Staff and the consultant said a separate, townwide stormwater fee analysis is underway. The study will use impervious‑area analysis (aerial imagery and parcel analysis) to model fee proposals and link revenue needs to capital and maintenance plans; staff flagged three stormwater decision packages already in the budget process. Eckert and staff said more workshops on stormwater are expected in the coming months.

Customer use patterns and meters: The consultant showed seasonal usage patterns: in summer months, 71% of accounts exceeded 10,000 gallons; 54% exceeded 15,000 gallons, reflecting irrigation demand. Council members asked about smart meters and time‑of‑use or day‑of‑week incentives; staff said Flower Mound currently uses radio reads (drive‑by collection) and would need a significant meter upgrade to provide real‑time smart‑meter data for time‑of‑use programs. Eckert noted time‑of‑use and similar programs can be administratively complex and that customer portals and participation rates vary.

Why it matters: The review informs council as staff prepares budget and rate proposals in the coming months. Council requested more benchmarking and more detailed capital and tariff impact estimates; staff said they would return with additional analysis and stormwater fee proposals.