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Consultant recommends modest 4% utility‑rate increase; residential bills buffered until 15,000 gallons
Summary
NewGen Strategies and Solutions told Lancaster council it recommends roughly a 4% overall water/wastewater rate increase driven by wholesale cost hikes from Dallas Water Utilities and Trinity River Authority; changes focus on upper volumetric tiers so most residents (average ~5,000 gallons) would see little water‑rate change.
Chris Eckert, a consultant with NewGen Strategies and Solutions LLC, presented the city’s annual utility‑rate study and recommended an approximately 4% overall increase to maintain revenue sufficiency and support reinvestment in the water and wastewater system.
“...this is a business type activity of government,” Eckert said, framing the rates as necessary to cover wholesale costs and capital needs. He told council the draft five‑year capital plan anticipates about $48,000,000 in investment and that wholesale increases from Dallas Water Utilities (about 8%) and the Trinity River Authority (about 6%) are the principal near‑term drivers. To limit the impact on most customers, NewGen proposed keeping the fixed charge and the first volumetric tier unchanged while adjusting the upper two tiers so residents would not see a water bill increase until usage exceeds 15,000 gallons. Eckert noted the typical 5,000‑gallon residential customer would move from about $4.49 to a projected $4.76 in volumetric charges depending on the final structure.
The consultant emphasized wastewater pass‑throughs will be the main immediate pressure on bills; council members pressed for details on higher‑user impacts and commercial adjustments. Eckert said the recommended structure targets greater cost responsibility for heavier users while preserving affordability for typical residential customers. The presentation concluded with the consultant offering to return with detailed rate tables if council wanted further refinement.
