The North Texas Municipal Water District is considering a potential rate hike, which is currently projected to be around 11% but is subject to change. If approved, this increase would raise the cost to $3.77 per 1,000 gallons.
According to WFAA, the approval of this rate increase will be determined by the board of directors of the North Texas Municipal Water District on September 28, 2023. Should it receive the board's approval, the new rates would become effective starting from October 1, 2023. Among the cities encompassed by the district are Plano, McKinney, Frisco, Allen and Richardson.
The North Texas Municipal Water District sets wholesale rates for water, wastewater and solid waste every year. The water district is a wholesale water provider serving 2 million people in 10 North Texas counties. The rate paid by water consumers varies by each city we serve as it sets customer rates to cover the wholesale cost as well as local system costs.
The rates are not only set by the amount of water used but also for the costs associated with operating, maintaining and expanding the system, as well as to repay debt for existing pipelines and facilities.
The Dallas Morning News reported some city officials are concerned about the increase. “No one’s walking away every year with a double-digit increase on their salary,” Richardson City Council member Ken Hutchenrider said during a June 5 work session. “I’m still just very, very, very concerned because there’s not many businesses that can pass through 11, 10, 12, 15% to their customers and stay in business.”
During the June 5 work session, the Richardson City Council received a comprehensive presentation regarding the possible 11% hike in the wholesale water rate. Council members were also informed about a proposed 7% increase in wastewater rates, resulting in a cost of $2.75 per 1,000 gallons for the regional system.
But the district said that even with planned rate increases, the wholesale water rates are usually lower than predicted. Nationally, costs are lower than average for combined water services.
