Manvel City Council is considering a 14.9% overall increase in water and wastewater rate revenue for fiscal year 2026-27 to help close a projected gap in the utility fund, following a budget update at its Aug. 17 workshop.
Under the proposed scenario, the residential combined minimum bill for the first 2,000 gallons would increase by about $9 per month, city documents show.
What residents need to know
The current residential rates for the first 2,000 gallons are $28.36 for water and $34.03 for wastewater, for a combined minimum bill of $62.39 per month. Usage above 2,000 gallons is currently charged at $2.60 per 1,000 gallons, city documents show.
Under the proposed scenario, a 14.9% adjustment applied equally to base and usage charges would result in:
- $32.59 for water
- $39.10 for wastewater
- $2.99 per 1,000 gallons for usage
The adjustment would bring the combined residential minimum bill to $71.69, or an increase of around $9 per month, city documents show.
Some context
The 14.9% increase comes as city officials anticipate higher utility costs in FY 2026-27, driven by facility operations, debt service and staffing needs, according to city documents.
The city’s new water reclamation facility is projected to increase electricity costs from $85,000 to $290,000. Debt service on the new facility is also projected to increase by $231,000, city documents show.
The proposed budget also includes around $300,000 funding for additional personnel and equipment, including:
- $191,000 for a water and wastewater operator and a utility maintenance technician
- $30,000 for lab and safety equipment
- $85,000 for new vehicles
At current rates, the proposed FY 2026-27 budget leaves the utility fund with a projected $488,084 funding gap. City officials estimate a 14.9% increase in rate revenue would generate enough additional revenue to close the gap, city documents show.
The discussion
Mayor Dan Davis raised concerns over raising utility rates, saying he would have difficulty supporting an increase on existing ratepayers to cover costs associated with new growth.
“I understand that costs are increasing ... I get that we need new equipment,” Davis said. “But it would be tough for me to increase rates on existing ratepayers to pay for operators at a new plant that the existing ratepayers don’t need.”
Water and wastewater revenue is projected to increase by about $200,000 from FY 2025-26 to FY 2026-27 as more ratepayers are added to the system, city officials said.
Davis said he wants to examine the additional revenue generated by new ratepayers to determine whether those funds could help cover rising costs and reduce the need for a rate increase.
What’s next
City Council will discuss the FY 2026-27 budget and hold a public hearing on the proposed rates at its Sept. 8 meeting, city officials said.
