Dallas council adopts utility resolutions: stormwater fee held, sewer eased, water rates set to rise 6% annually

The Dallas City Council unanimously approved a package of utility measures on Tuesday that keeps the stormwater fee steady, trims sewer charges for the year and sets a multi-year 6% annual increase in water rates.

Staff presented Resolution 3556 to retain the stormwater fee at $16 per month for each sewer customer, explaining the fee is paid per unit and funds flood mitigation projects, culvert widening and other stormwater work. Staff said the stormwater fund currently collects about $1.2 million a year and carries an ending balance of roughly $3.5 million. "This fee is a fee — not a rate — and is paid per unit," staff said in the presentation. Council voted by roll call and adopted Resolution 3556 unanimously.

The council then considered Resolution 3557 for the sewer fund. Staff described simplifications to commercial classifications and proposed a 6% decrease to sewer charges this year to balance a proposed water increase; the presentation said a one-year 6% reduction followed by four years of 0% increases would preserve a healthy ending fund balance above staff's target of about $2 million. Council adopted Resolution 3557 unanimously by roll call.

The most-discussed item was Resolution 3558, the corrected water-fund resolution. Staff distributed a revised resolution at the meeting and outlined several edits: updated tables to reflect the 6% increase, corrected commodity charges, a clarification that base rates will be charged by meter size (aligning Dallas with other cities), and an effective date of Feb. 1, 2026 with annual 6% increases on each Feb. 1 thereafter until changed by the council. The water-rate increases are intended to build reserves for major capital needs, including the Aaron Mercier Reservoir expansion project. Staff estimated the reservoir project could cost in the roughly $60 million to $90 million range and said building reserves now reduces future debt service.

Staff provided an example for single-family customers: using five units of water, a 6% decrease in the sewer charge would save $2.71 while the 6% water increase would raise the bill by $2.62, yielding a net change of about 10 cents in the customer's favor under the assumptions used in staff's example. The corrected resolution also includes rounding the rates to the nearest nickel. Council took a roll-call vote and approved Resolution 3558 unanimously.

What happens next: the water-rate changes are scheduled to take effect Feb. 1, 2026 and will recur on Feb. 1 each year at the same percentage until the council votes to change that schedule. Staff said future councils could repeal or amend the resolution by passing a subsequent resolution.

Authorities referenced in the meeting included prior city resolutions (example cited: Resolution 3497) and municipal code sections governing fees and reservations. The council recorded unanimous votes on all three resolutions by roll call.