On Oct. 27, council received a recommendation by Willdan Financial Services to implement a three-year rate plan that would increase the average customer’s monthly bill by $18.20 by Oct. 2027.
The cost
Willdan’s recommendation is to increase rates in three stages, the first occurring in January 2026, with an average customer increase of $3.31 in wastewater rate. For the study, an average customer is one who uses 7,500 gallons of water and 5,000 gallons of wastewater per month.
Subsequent water and wastewater rates would increase again in October 2026 and October 2027, increasing the average customer bill by $8.88 and $6.01, respectively.
The current average monthly bill is $106.98, according to a presentation by Willdan Vice President Dan Jackson. According to agenda documents, a 2% wastewater rate increase was implemented in the fiscal year 2025-26 budget process, but staff held off on additional increases until the Willdan study concluded.
Assessing the need
The recommendation was made to take on increased operational costs from the Canyon Regional Water Authority, or CRWA, and the Cibolo Creek Municipal Authority, or CCMA.
Aside from operational costs, primary assumptions in the Willdan report include $37.57 million in debt issuance to expand the CCMA South treatment plant, as well as debt required to fund additional projects.
If council approves the recommendation, Jackson said the city would have an opportunity to adjust the rate if debt issuance is not as aggressive as initially planned.
“It’s better to have the revenue and not need it than need the revenue and not have it," he said. "I think it makes more sense from a financial perspective to be conservative and to assume you’re going to need to issue that debt immediately."
Aside from projects related to the CCMA South plant, other utility projects planned through fiscal year 2029-30 include the extension of Haeckerville Road and utility relocations along FM 1103.
Jackson said that many factors go into raising rates, including the projects, costs of providing water and inflationary costs.
“Like any complicated, complex system, [utility] wears out over time ... the well-run community has to balance the desire to keep rates low with the need to invest in your system,” Jackson said.
Next steps
Council agreed to table formal action on the Willdan recommendation until a Nov. 18 meeting.
