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Richardson council signals support for meter‑equivalency rate plan with senior protections
Summary
City staff outlined three water/sewer rate scenarios and recommended option 3 — phased meter‑equivalency plus a senior discount that would freeze the base charge for qualifying low‑volume senior accounts — and council members generally agreed to move forward with that recommendation for FY27.
City staff and consultants presented three alternatives for Richardson’s retail water and sewer rates and asked the council for direction to inform the FY27 budget.
Bob Klimier (S13) summarized the options: Scenario 1 would keep the current uniform $8 monthly base and apply a roughly 10% combined increase for an average residential customer (10,000 gallons water/5,000 gallons sewer). Scenario 2 introduces meter‑equivalency: different base charges for the nine meter sizes the city serves, phasing a 3/4‑inch base from $8 to $20 over five years and adjusting volumetric tiers to encourage conservation. Scenario 3 builds on scenario 2 and adds a senior discount: qualifying seniors (age 65+, with 3/4‑inch or 1‑inch meters) would keep the $8 base charge while other customers move to the meter‑equivalency bases; staff said making the senior freeze permanent was the current plan though the rollout is on a five‑year schedule.
Why it matters: Council must adopt a rate structure that funds required capital and maintenance while balancing affordability and fairness. Staff said the proposed changes are intended to reduce volatility, better match charges to meter capacity and promote conservation while protecting low‑use seniors.
Council discussion and direction: Council members asked how proposed changes would interact with future bond programs, whether the $80 million five‑year capital plan would be affected and how the larger meter base charges would place Richardson relative to neighboring cities. Staff clarified that bond programs (general‑fund supported) are separate but that the water/wastewater enterprise supports certificates of obligation for system debt. Council member Justice (S8) said she supported scenario 3: “Of the scenarios you presented, scenario 3 absolutely is the right decision,” and Mayor Pro Tem Hutchenrider (S9) and other members voiced agreement.
Implementation notes: Staff said the proposed rate changes would take effect in October with the first new bills in November if adopted, and that the city intends to phase in meter equivalency over five years. Staff will return with more detailed customer‑impact breakdowns and final ordinance language for adoption.
