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City warns rising water, sewer and sanitation contracts will push utility costs higher
Summary
Staff told council that Waco water and WMARS sewer contract increases will raise utility fund costs (Waco $3.59/1,000 gallons charged to the city; the city charges residential tiers up to $9.25/1,000). The utility fund will bear pass‑through increases but can also recover some costs via customer billing.
City staff briefed council on utility‑fund pressures tied to intergovernmental and private contracts. Staff said Waco is charging Robinson $3.59 per 1,000 gallons and that the city's residential and commercial retail rates are set above that level, so the city is not operating at a loss on water purchases.
"Waco is charging us $3.59 per thousand gallons," the staff member said; the staff member also noted commercial customers are charged $5.75 per 1,000 gallons and residential tiers escalate up to $9.25 per 1,000. Staff warned that WMARS sewer and waste‑management passthroughs will add roughly $68,451 to the utility budget but that billing adjustments will recoup most of the extra cost.
Staff also described a 'take or pay' clause in the Waco contract with a 500,000‑gallon minimum per day and said the city had negotiated temporary allowance to go over the contracted volume while addressing an algae condition at the treatment plant. Councilors asked about caps on annual increases and the ability to renegotiate terms; staff said there are no annual price caps in the current agreement.
Council did not take formal action but asked staff to continue monitoring contract exposure and to return with options if renegotiation or alternative supplies become feasible.
