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City staff recommend 7.5% blended water/wastewater rate increase to sustain utility fund
Summary
Finance staff recommended a 7.5% blended water and wastewater increase to maintain a 90‑day operating fund balance and absorb TRA/DWU cost increases; average residential impacts are roughly $1.73/month (varies by usage).
Melissa Everett, Carrollton’s director of finance, told council the utility fund — an enterprise fund that covers water/wastewater treatment, capital and debt — needs a 7.5% blended rate increase to maintain a 90‑day fund balance and to accommodate impending TRA/DWU pass‑through cost pressures and planned capital tied to upcoming bond projects.
Everett said the increase was designed to ‘‘feather in’’ higher costs and avoid a sharp spike in 2027 when larger cost items materialize. She laid out example impacts: a residential base increase of roughly $0.74 per month and an overall average residential bill increase of about $1.73/month (other slide figures showed a $3.67/month example for a 6,000‑gallon user; commercial impacts will be larger). The recommendation reflects the utility’s AAA bond rating requirement to keep reserves and to fund capital projects such as the automated meter infrastructure, transfer switch upgrades and other utility capital.
Council confirmed that the Finance Committee reviewed the proposal in mid‑November; members asked about the drivers (Everett and staff pointed to TRA/DWU escalation and rising construction costs) and about how the increases would be phased to reduce customer shock.
Why it matters: Utility rate changes are routine but directly affect household budgets and are tied to long‑term capital and maintenance needs, particularly as the city coordinates utility work with street and bond projects.
