Title
Receive an update regarding the Water and Wastewater Utility Fund.
Body
REQUESTOR:
City Council
BACKGROUND:
In 2025, the City Council adopted adjustments to the City’s water and wastewater rates following a comprehensive utility rate study. The adjustments took effect in November 2025 and were intended to address rising wholesale water and wastewater treatment costs, long-term Utility Fund sustainability, and significant capital needs associated with the City’s aging water and wastewater infrastructure. The adopted rate structure also removed the previous 10,000-gallon residential wastewater billing cap.
The City’s 2025 Water and Sewer Rate Study documented substantial increases in wholesale water and wastewater costs, a trend that has continued in subsequent years. From FY 2016 through FY 2027, Dallas Water Utilities’ (DWU) wholesale volume and demand rates increased by approximately 48% and 58%, respectively. Over the same period, the Trinity River Authority (TRA) wastewater treatment rate increased by approximately 103% through FY 2026, with a projected cumulative increase of 124% by FY 2027. These increases reflect continued upward pressure on the City’s cost of providing water and wastewater services.
In 2026, the City developed a long-range Water and Wastewater Capital Improvement Plan to prioritize rehabilitating and replacing aging infrastructure, including pipelines more than 60 years old. The existing plan contemplated an approximately 20-year rehabilitation period.
Following recent utility billing cycles, the City has received questions from residents regarding higher-than-expected bills, water consumption, meter accuracy, the effect of the revised wastewater rate structure, and the long-term financial needs of the utility system. Staff have been reviewing individual accounts and systemwide data to objectively evaluate these concerns.
In response to concerns raised by residents and City Council regarding increased water and wastewater b...
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