What residents need to know
Director of Utilities Michael Thane recommended a base rate increase of 5% for water and 6% for wastewater for all customers for the next three years. The metered increase approach is to reduce one-year rate shock, Thane said.
The city is also proposing changes to water rate structure by adding a “super” tier. For the average household, the base charge would be $17.35 per month, with increasing costs for 5 tiers of 5-10 thousand gallons. The top tier would charge $6.85 per thousand gallons over 34,000 gallons.
Currently, 14.4% of customers use 40% of the residential water in Round Rock, according to city documents.
Wastewater is billed at a constant rate based on the winter average usage. For next year, the base rate would be $14.07 per month and an additional $3.15 for every thousand gallons of usage.
Stormwater rates would see a $2 increase this year, from $4.75 to $6.75, with the next increase likely in fiscal year 2028.
The big picture
Residential water usage peaks during the summer heat. The city has to build out their infrastructure to accommodate this seasonal usage, Thane said.
“Conservation has really become a big topic, and that’s why you’ll see some changes we’re making to our rate structure,” Thane said.
Rising costs, such as salaries and chemicals as well as infrastructure projects planned in the next five years also contribute to the need for water and wastewater revenue increase, according to city officials.
Water retail rates and structure were reviewed in 2017 and saw an increase in both 2017 and 2018. When the rates were reviewed again in 2021, there were no structural changes or increases. The proposed increase for the upcoming fiscal year comes after a new cost of services study from this spring.
What's next
Passing the rate increase requires two public readings. Council will take a final vote at its Sept. 12 meeting.
