Cibolo staff propose water +7% and wastewater +11% increases; combined average bill would rise about $11.12 per month

City staff presented a three‑year utility rate plan and recommended the Year‑2 increases for FY27: water rates up 7%, wastewater up 11% and drainage fees up $1.75 (a 23% increase for that fee). Using an 8,000‑gallon water consumption and a 6,000‑gallon wastewater consumption baseline, staff calculated a $9.37 monthly increase for water and wastewater combined and an additional $1.75 for drainage, a total of roughly $11.12 on an average $111 bill.

Staff explained the drivers: wholesale cost increases from regional providers (CCMA, CRWA), required capital projects (including FM 1103 utility relocations tied to development), and the need to maintain adequate fund balances for emergencies and future one‑time projects. The Bolton Road lift‑station design and anticipated CCMA construction were highlighted as large upcoming costs that the rate plan is meant to support.

Council members asked whether the city could use fund balance to blunt the immediate rate impact for residents; staff replied that fund balance should be reserved for one‑time costs and not recurring operations. Staff noted the utility fund has an ending reserve projection of about $8.4 million (41% of recurring revenues) and that careful use of fund balance for design costs could reduce future debt needs.

Council did not adopt a final rate ordinance at the workshop; staff will bring detailed rate schedules and the consultant report (previously presented in October/December) back to council and will provide the market and contract numbers referenced in the rate study.