Dripping Springs residents will soon see larger wastewater bills after City Council approved an increase to rates at a May 19 meeting.
The rate adjustments were driven by litigation delays and rising costs, essential infrastructure improvements, and the need to support responsible growth, according to a news release.
The overview
City officials approved increases to both the base and the usage fees for wastewater rates. The new base fee is $43.32, and the usage fee is $5.67 per 1,000 gallons for residential customers. The new rates will result in a $20 to $30 bill increase per month, depending on usage. A residential customer using approximately 5,262 gallons per month will see their bill change from $50.19 to $73.16, a nearly 46% increase.
“We understand that rate increases impact our residents and businesses, and we take that seriously,” Deputy City Administrator Shawn Cox said in the news release. “We are doing everything we can to minimize the burden on our ratepayers, including contributing General Fund dollars and carefully phasing these adjustments to avoid even greater impacts in the future.”
Commercial wastewater customers will also see increases in their rates, including a usage fee of $5.99. Based on the scenarios presented to council, commercial customers could see their bills increase by $80 to $400, depending on usage.
The last time the city adjusted wastewater rates was in 2022.
Diving in deeper
The plan approved by council includes an increase in the general fund contribution from $980,000 to $2.5 million. The $2.5 million will be contributed annually through 2030 toward the cost of providing wastewater services to help mitigate customer fees.
Additionally, wastewater rates are expected to increase each year, but City Council may reevaluate after one year of the new rates.
The background
In 2015, the city of Dripping Springs applied for a Texas Pollutant Discharge Elimination System permit from the Texas Commission on Environmental Quality. The TCEQ then approved the permit in 2019, but a lawsuit filed by the Save Our Springs Alliance resulted in years of litigation and stalled the process of expanding wastewater services. In 2025, the Texas Supreme Court sided with Dripping Springs and the TCEQ, allowing the city to resume progress on expanding wastewater infrastructure.
Costs have risen since the city originally planned for the project, and the city needed an additional $51.5 million, which it is securing through a loan from the Texas Water Development Board, according to previous reporting by Community Impact.
What’s next?
Customers will see the new rates reflected on their September bills.
“This is about doing what’s necessary to protect our water, support our community, and plan responsibly for the future,” Mayor Bill Foulds said in the release. “We know this impacts our residents and businesses, and we are committed to being transparent about why these decisions are being made.”
