Increased water, sewer rates pass first reading

The first of three readings was approved by the Graham City Council last week for an ordinance to increase the water and sewer rates by 7% for the in-progress fiscal year budget.

City Manager Eric Garretty presented the ordinance to the city council during their meeting Thursday, June 26.

“The city manager has proposed, as part of the fiscal year 2025-2026 budget development process, a 7% increase to water and sewer rates,” he said. “This increase is based on both the recommendation of the 2024 water and sewer rate study and an analysis of the financial needs of the city’s water and sewer system.”

The city manager said that even with the increase the city will still be using over $600,000 in reserve funding to keep the water treatment system operational. 

“While we understand the impact that a rate increase has on our customers, the cost to own and operate our water and sewer utilities has continued to exhibit an upward trend,” Garretty said. “These utilities must generate the revenue required to sustain themselves through the rates collected from customers of the system.”

Base meter and water volume charges are increasing by 7% across the board for both residential and commercial customers both inside and outside the city limits.

Residential sewer rates would increase to $35.05 per month for the first 2,000 gallons of water used, plus $2.89 for each additional 1,000 gallons of water used. The maximum charge will not exceed $38.13 per month. 

Commercial sewer rates would increase to $30.05 per month for the first 2,000 gallons of water used, plus $2.89 for each additional 1,000 gallons of water used. There is no set maximum monthly charge for the commercial class.

For commercial and residential customers without history, they will be charged $34.09 per month until a usage history is established.

The city is planning for the second reading for the new rates to be held at their meeting Thursday, July 17. A  public hearing will be hosted at 8:30 a.m. Thursday, July 31 at 608 Elm St. regarding the increases.

“If this ordinance is not ultimately adopted, the impact is that the city will be forced to delay infrastructure replacement, will be unable to retain qualified operators to maintain the system and will be unable to conduct required maintenance of the system,” Garretty said.

The proposed budget will also be presented to the city council at the July 17 meeting. After being presented, the city council may amend the proposed budget at any public meeting prior to the adoption of the budget by ordinance.

“As we move into August, we need to have this (rates increase) ordinance adopted prior to adoption of the budget because it affects the budget numbers,” Garretty said. “...At the actual budget adoption meeting, or prior to that, we will need to have adopted this ordinance because your budget numbers for water and sewer are based on the rates that are contained in this ordinance.”

Another budget workshop will be held at 6 p.m. Thursday, Aug. 7, followed by another public forum and town hall meeting will be held at 6 p.m. Tuesday, Aug. 26 to receive public comments on the budget, city services and city concerns.

“Instead of the public forum, where we do not get to interact and respond, the town hall allows us to respond individually to questions brought up during that meeting,” Mayor Alex Heartfield said. 



The ordinance being considered by the Graham City Council is included below this article for download and is available at the city website at cityofgrahamtexas.com.