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Consultants recommend 9% water/sewer rate increase to meet reserve targets
Summary
Raftelis consultant Angie Flores presented a five-year public-utilities forecast and recommended a 9% water/sewer rate increase in 2027 to cover rising sewer‑treatment and purchased‑water costs and keep the fund compliant with the city's reserve policy.
Brandon Lacy, Director of Public Utilities, introduced Raftelis consultant Angie Flores, who summarized the FY27 rate study and five‑year outlook for DeSoto's public utilities fund. Flores said major cost drivers include a roughly 34% (about $3 million) increase in sewer-treatment costs from '26 to '27 and continuing increases in purchased water costs.
Flores told the council that without rate adjustments the public-utilities fund would fail to meet reserve targets; her firm recommended a 9% rate increase for 2027 (with additional increases forecast in subsequent years) to preserve fund health. "So that's what we're recommending is a 9% rate increase for '27," Flores said. Samples in the presentation showed the average residential bill moving from about $103 to $112 under the proposed 9% change. Directors said the rate recommendation would be effective October 1 if adopted and that staff will present ordinance and public-notice language as needed before implementation.
