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Council Adopts Targeted Utility Rate Changes; Mustang Bayou Faces 16% Increase
Summary
Council approved a resolution adopting utility rate adjustments effective June 1, 2026: Mustang Bayou service area rates will increase about 16% and City South (formerly Sienna Mud 2) will shift to a 2,500-gallon base with a $1/1,000-gallon volumetric charge above that level; city staff outlined a communications plan and fiscal rationale.
Missouri City Council unanimously adopted a resolution March 16 setting utility rate adjustments for two service areas and launching a resident communications plan. Assistant Director of Utilities Nicholas Cook said the Mustang Bayou service area will see a 16% water and wastewater fee increase in 2026 and that City South will reduce its included base volume to 2,500 gallons, with water used above that volume charged at $1 per 1,000 gallons. Cook said the changes would take effect on June 1, 2026.
Cook provided example impacts during his presentation: under the Mustang Bayou recommendation, a customer using 6,000 gallons per month would see an increase of $10.79 on the water bill; the City South example showed a $7.50 increase for a 10,000-gallon usage scenario under the proposed volumetric charge. Cook said consultants developed the rate recommendations and that the adjustments are intended to address rising costs (chemicals, electricity, labor and regulatory changes) and to avoid larger deferred-maintenance spikes later.
Staff outlined a three-phase communications rollout that includes a press release and website landing page with FAQs, newsletter and bill inserts and social media in the immediate to midterm phases, followed by HOA engagement and town halls as needed. Council members asked about infrastructure condition and how much of the rate increase is earmarked for capital work; Cook said the City South capital improvement plan includes approximately $400,000 for lift station improvements over three years and that the resolution covers a three-year schedule with scheduled future increases (the next increase noted for October 2027).
The council moved and seconded the resolution and the city secretary announced the motion carries unanimously.
