To amend Ordinance No. 2023-9-19 codified as Sections 21-135, 21-136 and 21-147, of Article IV, Service Charges Generally, of Chapter 21, Utilities, of the Code of Ordinances of the City of Plano, to increase the fee schedules for water and sewer services effective October 1, 2024, adding a fee schedule for fire hydrant uses inadvertently deleted in a prior ordinance amendment, and providing a repealer clause, a severability clause, a savings clause, and an effective date. Adopted Ordinance No. 2024-9-12

Effective Tuesday, October 1, 2024, utility rates for the City of Plano's residential water and sewer services will increase. Customers are currently charged a minimum rate of $28.89 (1,000 gallons included) and this rate will not change. The 1,001-5,000 gallons tier rate is currently charged less than what the City pays for wholesale water from the North Texas Municipal Water District. The City’s rate strategy includes gradual increases over the next three years so this first billed tier rate will cover the cost of wholesale water. Higher volumetric water rates are increasing by 7.5%. Furthermore, Sewer charges are also increasing by 7.5%. Your sewer bill is calculated based on your winter (December through March) water usage. This is known as your Winter Quarter Average, and resets each year. 

These changes are necessary for Plano to continue our high-quality services at the best value possible despite growing costs. Wholesale water and wastewater treatment, which are over two-thirds of our total water and wastewater expense annually, are increasing. The City also needs to fund over $240 million for our own Capital Improvement Projects.

Approval of this item will increase Water & Sewer Revenues by an estimated $20,169,206 for FY 2024-25 compared to the FY 2023-24 re-estimate. The water & sewer rate increase is included in the FY 2024-25 Water & Sewer Budget.

Approval of this agenda item supports the City's Strategic Plan Critical Success Factor of Excellent, Innovative, and Accountable City Government.