Water and sewer rates will increase Jan. 1 in the city of Frisco, largely because of increasing rate costs from the North Texas Municipal Water District.

The Frisco City Council agreed on Sept. 17 to increase rates by 3.5 percent.

"Our water rate is really two components, one of which we control and one of which we do not," councilman Jeff Cheney said. "We get water rates from [NTMWD], and those are passed along to our residents. Of course we have our own infrastructure we have to pay for."

The city's rate increases came after learning the NTMWD is increasing the cost per thousand gallons of water from $1.70 to $1.88.

Those rates, according to city staff members, are expected to continue increasing throughout the next 10 years, along with the cost to collect and treat wastewater.

The increases are also because the city is adding 12 staff members and spending $12 million on water and sewer capital projects.

The increase is included in the 2013-14 budget.

2013-14 budget

The City Council approved the 2013-14 city budget and tax rate at its Sept. 17 meeting.

Council members voted to keep the tax rate of $0.46191 per $100 in property value, where it has stayed for the past two years.

Because of rising home values, taxes for an average home worth $299,889 will be $1,385 in the coming year, in contrast to last year's $287,495 average home value and $1,327 in taxes.