Dripping Springs City Council members approved an ordinance that will increase wastewater rates by 10% for residents living in both the city limits and the extraterritorial jurisdiction, or ETJ, at its April 19 meeting.
In-city residents pay a monthly minimum of $35 per month for wastewater service, while out-of-city residents pay $42 per month. Service costs for residents outside the city limits start at a rate 20% higher than in-city residents.
New rates for in-city residents will be roughly $39 minimum per month and about $46 minimum per month for ETJ residents.
The city’s previous wastewater analysis—conducted by utility consultant Bruce Fairchild, who also produced the 2021 study that spurred the proposed 10% increase, resulted in a 6% increase in service rates in January 2018.
“We began with the budget for 2022, and we looked at the costs—operating costs, administrative costs, service costs—incurred to provide wastewater service,” Fairchild said at the April 19 meeting. “Compared to five years ago, the cost has more than doubled. However, the number of customers has not. It’s only increased by about a third. ... When you do a cost analysis on what it costs to serve each customer, the rates are going to have to be quite a bit higher.”
Fairchild noted in his analysis that most cities possess historical records that show water systems’ typical operating expenses and reflect a stable number of customers and usage rates. Dripping Springs is developing a new wastewater system to keep up with unprecedented growth, making costs harder to estimate.
As a result, Fairchild said the new wastewater rates are based on rates charged by nearby cities, including Buda, Kyle and Johnson City.
Dripping Springs is on the lower end of wastewater fees compared to those cities, even with the 10% increase, according to Fairchild.
After approving the new rates, the city is required to publish a notice informing residents of the changes. The new rates will be reflected on May utility bills.
