The first phase of the wastewater treatment plant expansion project in Fair Oaks Ranch is moving forward following approval from City Council on March 5.
The project includes upgrades to the Effluent Pump Station, pipeline conveyance improvements, upgrades to the Bottom of the Hill Lift Station and headworks odor mitigation.
What’s happening?
Overall, the first phase of the improvement project focuses on pumping capacity and upsizing the conveyance pipelines, which will allow effluent to be sent from the wastewater treatment plant to the ponds at Fair Oaks Country Club and Golf Course.
The total cost of the project is around $5.8 million, originally projected at nearly $4.2 million. City staff said this increase was mostly due to the projected cost being calculated when the project was first planned, and costs have increased over the years, resulting in the higher total.
Director of Finance Summer Fleming said the anticipated impact on wastewater customers is to increase rates in fiscal year 2026-27 and decrease them in subsequent years to fund the project with minimal rate spikes.
The base rate is expected to increase from $16.91 in FY 2025-26 to $17.36 in FY 2026-27. This rate is an estimation and is subject to change.
Fleming said the overall debt service for wastewater is expected to decrease year-over-year, causing a reduction in the impact on customers.
While this debt service approach will cause the city to pay slightly more in interest, it will provide a consistent rate schedule for customers. The rate change will only apply to wastewater customers.
“While infrastructure projects of this scale will always have some rate impact, this structure intentionally reduces the risk of a sharp first-year rate increase, and instead provides a smoother, more manageable path forward for our customers,” Fleming said.
Looking ahead
The project is anticipated to begin in April or May, taking around a year to complete. This wastewater expansion is the first phase of the overall project, which aims to ensure the facility can meet the capacity of the city.
City staff said the city currently has over 11,000 residents, and the build-out capacity is around 16,000.
