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Terrell council approves 7% water and sewer rate increase, citing rising wholesale costs
Summary
After extended questioning about infrastructure needs and alternatives, the Terrell City Council on Aug. 19 approved ordinance 3125 to raise water and sewer rates by 7% for the coming year. Council members pressed staff on how revenue will be used and on long‑term options to reduce costs.
The Terrell City Council approved a 7% annual increase in water and sewer rates on Aug. 19, voting to adopt ordinance 3125 after a staff presentation and extended council questions about the city’s aging utility system and reliance on the North Texas Municipal Water District.
City utilities presenter Chris Snapp told council the 7% proposal is intended to cover rising operating costs and to move the utility fund toward breakeven, with capital projects funded separately through the city’s 10‑year capital improvement program. "We looked at a 7% increase," Snapp said during the presentation, adding the model reaches breakeven near 2030.
Councilmembers pushed staff for assurances the revenue will go to repairs and not be diverted. One councilmember reiterated the goal of reaching a target of 120 days cash on hand before considering reductions, and another asked whether the city could pursue membership in the North Texas Municipal Water District or litigation as alternatives to repeated rate increases. Snapp and other staff said membership is unlikely without giving up local water assets and that litigation has been tried in the past and upheld by Texas courts.
Mayor Ronnie Velasquez moved to approve ordinance 3125; Donna Renee Anderson seconded and the motion carried with the ayes called on the council floor. The ordinance updates Appendix 1 of the city fee schedule to implement the new monthly meter and service rates.
Nut‑Graf context: Terrell’s decision follows a year of steep wholesale increases from regional suppliers and an evaluation by city staff that balancing operations and capital needs requires a modest but sustained rate increase. Council signaled support for exploring additional operational efficiencies and asked staff to return with clearer itemized plans linking new revenue to prioritized pipe and system repairs.
Council action and next steps: The council approved the ordinance on first/second reading as presented; staff said capital projects (large pipe replacements, pump stations, storage tanks) will continue through the CIP, while the new rate will be used primarily for operation, maintenance and incremental reserves. Interim staff additions — including interim assistant city manager Bernie Parker and an interim utility director — were cited as additional capacity to pursue cost‑reduction steps.
The council did not set specific rollback amounts or multi‑year guarantees at the meeting; members asked staff to present additional scenarios and reporting that would track how increased revenue is spent and progress toward the 120‑day reserve target. The ordinance is effective as provided in its language and will be implemented on bills following administrative processing.
