Wylie council directs staff to use modest across‑the‑board 2026 water and sewer increase amid rising wholesale costs

Wylie — The Wylie City Council on July 22 heard a five‑year water and sewer rate study from NewGen Strategies and Solutions and gave staff direction to incorporate an across‑the‑board rate increase for 2026 to address rising wholesale and capital costs.

Matthew Garrett, a consultant with NewGen Strategies and Solutions, told the council that the city’s wholesale costs from the North Texas Municipal Water District and planned local capital projects — especially work tied to Muddy Creek wastewater treatment expansions and Rush Creek system improvements — are driving a need for gradual rate increases over the next five years. Garrett said, “if we do a rate change across the board and we increase 5.15% on our water and sewer charges, that effectively turns the check engine light off on our dashboard.”

City finance staff presented two alternatives: a single, even increase on both water and wastewater (roughly 5.15% in 2026), or a split that raises wastewater rates more (about 3.5% on water and 6.5% on wastewater) to better mirror where the costs are occurring. Melissa Brown, representing the finance department, said the council’s decision would be used to build the proposed budget.

The consultant showed the five‑year forecast the council was given: wholesale charges are forecast to drive roughly 56–61% of utility costs and the plan includes about $24.6 million of assumed debt and several capital projects in the next five years. NewGen identified a set of capital items that drive timing and magnitude of future increases, including sizable wastewater projects at Rush Creek.

Using NewGen’s example billing scenario, a typical residential customer using 7,000 gallons would see a monthly combined water and sewer bill move from about $124.67 to about $130.87 under the across‑the‑board approach — a $6.20 increase in 2026. Council members discussing equity issues noted that wastewater in Wylie is charged as a flat rate and therefore raising wastewater more heavily could disproportionately affect smaller households.

After discussion, council members generally favored the even, across‑the‑board option for the 2026 budget (scenario 1). Council instruction to staff was to incorporate scenario 1 into the proposed budget and to return at the next meeting with rate ordinances for formal adoption.

Staff and the consultant emphasized that the city still receives an annual wholesale letter from the North Texas Municipal Water District and that the five‑year forecast should be revisited annually.

The council’s direction was for planning and budget purposes only; a formal ordinance setting rates will be brought back for adoption at a future meeting.