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Consultant: water and wastewater costs set to push Heath rates sharply higher; council weighs tier, seasonal or budget-based options
Summary
A Willdan consultant told the Heath City Council that rising wholesale and interceptor costs — and a proposed $72 million bond for wells and storage — would require substantial near-term water rate increases; council debated tier differentials, seasonal surcharges and water-budget models and asked staff for more modeling before deciding.
Jason Gray, vice president of Willdan Financial Services, told the Heath City Council’s special budget workshop that rising wholesale and capital costs mean water and wastewater rates for many U.S. communities are increasing rapidly and could “essentially triple” over 15 years according to industry forecasts.
Gray said the city of Heath currently recovers the cost of service but faces significant upward pressure from two sources: projected increases from wholesale providers (Rockwall/North Texas Municipal Water District) and large capital needs, including a proposed water-bridge capital program. He walked council through the components of current charges — a residential water base charge of $33.49 with 2,000 gallons included and tiered volume rates — and explained how wholesale water and Buffalo Creek interceptor costs are expected to rise…
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