Why Are Utility Rates Increasing?
The simplest answer to "Why are utility rates increasing?" is that the cost of providing utility services to citizens is increasing.
Water Purchase & Fees
The City purchases water from the North Texas Municipal Water District (NTMWD) and pays the NTMWD for the transmission and treatment of wastewater. The NTMWD has steadily increased the costs of these services over the last several years. However, fees paid to the NTMWD are not the only costs associated with providing these services to our citizens.
Water Delivery & System Maintenance
The North Texas Municipal Water District is only responsible for delivering water to a designated take point for the City, and for transmitting wastewater for treatment from a certain collection point. The City provides and maintains a water system that moves water from the take point to your home or business, and provides and maintains a sewer system that moves wastewater from your home or business to the designated collection point. Both of these systems require employees to perform daily and emergency maintenance, major projects to expand capacity and improve the systems function, and the ability to repay debt that may have been required to make those improvements or major repairs.
Refuse & Recycling Services
The City contracts refuse and recycling collections with Community Waste Disposal (CWD). The City's cost for providing these services increases annually in January based on a formula that uses specific portions of the Consumer Price Index (CPI). In the past, the City has not passed this increase on to utility customers.
For detailed information on the cost of providing utility services, please review the Utility Fund section of the City's Operating Budget.