The big picture
The Trinity River Association already increased their water rates for 2025, which will go into effect Jan. 1. City staff proposed adding an additional percent increase onto the TRA water and wastewater rates in order to increase revenue earned for capital investment projects at the end of five years.
There were five different options proposed by Assistant City Manager Mark Wood for increasing the water and wastewater rates, including a 1% increase, 3% increase, 5% increase, 7% increase and 9% increase.
At a 5% increase, the city would be adding $0.20 per 1,000 gallons of used water and $0.29 per 1,000 gallons of wastewater.
Combined with the approved TRA rates for 2025, the 5% additional fee would increase the total water rates to $6.24 per 1,000 gallons and wastewater rates would increase to $4.31 per 1,000 gallons, Wood said. This would create a revenue for capital investment projects of $1.1 million annually and $5.5 million at the end of five years.
These calculations are based on the average amount of water and wastewater used in the city per day, which is 8.1 million gallons of water and 2.9 million gallons of wastewater.
What’s happening
The TRA water rates will increase from $5.60 per 1,000 gallons in 2024 to $5.95 per 1,000 gallons in 2025, which is a 6.3% increase.
For wastewater, the TRA rates will increase 9.9% from $3.74 per 1,000 gallons in 2024 to $4.11 per 1,000 gallons in 2025.
The additional water fees from the city will be discussed further at the next city council meeting.
Current situation
Currently, without any additional water/wastewater fees from the city, the CIP fund is projected to have $15.4 million generated for upcoming projects over the next five years. At the end of those five years, there is a projected surplus of $7 million that will roll over to future utility projects.
This $7 million will be generated from the current tax revenue as well as property the city plans to sell.
“Our five years [are] fully funded with cash and has a balance at the end, but we've got to start looking at ways to build up [the] fund balance and start paying, or keep paying, for these projects with cash,” Wood said.
Also of note
Mayor Bobby Lindamood asked if the increased water/wastewater rate from the city could be exempted for senior citizens over 65. Wood said he would look into not charging the additional fees for those receiving the homestead exemption.
“Truly, times are tough, especially for our seniors who are living on fixed incomes,” Lindamood said. “I just like to make sure that we're taking care of those guys, as well.”
In similar news
The city accumulated three surpluses for fiscal year 2024 that will be invested into capital funds projects for the upcoming fiscal year.
The general fund will receive $3.59 million, the utility fund will receive $2.79 million and $770,000 will be transferred to the drainage fund.
“Transferring those funds over to the capital funds allows us to pay for projects with cash and avoid debt where possible,” Wood said.
