Paris consultant recommends 2.75% water-rate increase; council approves $21 million TWDB application

Chris Eert of New Gen presented the city's 2026 water and wastewater cost-of-service study, saying the firm recommends a modest 2.75% increase in water rates and no immediate change to wastewater rates, which already reflect recent multi-year increases tied to the city's wastewater-treatment project. "We are recommending a consideration of a modest change to water rates 2.75%," Eert said during the presentation.

Eert told council that much of the wastewater rate increases were imposed to pay for the recent treatment-plant rehabilitation and that the sewer ordinance has completed its scheduled increases. He flagged a near-term reduction in consumption by a major contract customer, reporting the Campbell Soup facility expects a roughly 20–25% decline in annual consumption and peak-day demand. "When Campbell reduces their use that reallocates those costs," Eert said, noting fixed system costs (pipes, pumps, staff) remain despite reduced variable expenses.

Eert recommended keeping a two-part rate (fixed charge plus variable charge) and asked the council to monitor contract customers and consider consolidating certain contract-meter pricing only if it helps system management; he also urged a slight increase to the industrial wastewater (strength) surcharge so industrial customers pay their share of treatment costs. The consultant said a 5,000-gallon monthly benchmark for an average single-family household would see about a $1.12 monthly increase on water alone; combined water and sewer at that level were discussed as roughly $138.91 if the water increase were adopted.

At the next agenda item, engineering staff described House Bill 500's $1.038 billion state water fund and advised Paris's allocation is approximately $21 million based on population. Mr. Haj said the grant would be 100% state-funded and require no local match and asked the council to authorize filing the application and related documents. "This is 100% funded by the state of Texas," Haj said.

The council voted 5-0 to approve a resolution authorizing staff to file for Texas Water Development Board funding and to proceed with grant-related agreements. Mayor and council members praised the opportunity and highlighted the need to address older waterlines.

What happens next: Staff will complete the TWDB application and continue discussions with contract customers; any formal rate changes would return to council for consideration in a future meeting.