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The Graham City Council approved a first reading of an ordinance that could increase water and sewer rates during their meeting Thursday, May 14. The city council set a public hearing for the increases for Tuesday, June 9.
The public will have an opportunity next week to share their thoughts on proposed increases for the city of Graham water and sewer rates.
The public hearing regarding the increase to the water and sewer service charges will be held at 6 p.m. Tuesday, June 9 at the City Hall Council Chambers at 608 Elm St.
Those that cannot attend the public hearing can submit a comment in writing no later than noon Monday, June 8 to: City Secretary, City of Graham, 612 Elm St. Graham, Texas 76450.
The water and sewer funds are enterprise funds for the city that are supported solely by the rates that are charged for those services.
The city council met Thursday, May 14 and heard a presentation from Graham City Manager Eric Garretty regarding the proposed changes as the city is underway on its budget planning process.
The proposed ordinance increases the charges for water base and volumetric charges by 7% and the sewer base and volumetric charges by 3%, while also adding a $30 capital surcharge with sewer rates to offset the cost of the wastewater treatment plant rehabilitation project.
“Council is being asked to review this ordinance earlier than normal in the budget cycle, as there are major changes to our rates. The planned acquisition of new debt for the sewer plant rehabilitation will necessitate the imposition of a capital surcharge on our sewer customers in order to make the debt payments,” Garretty said.
The city manager emphasized the importance of the city borrowing $12 million to do emergency repairs to the wastewater treatment plant.
“Which is primarily doing the electrical and building a new building that will include an indoor space for the electrical, so our electrical isn’t out there rusting and causing all the problems in the weather,” Garretty said. “...We’re going to do everything possible to make that initial $12 million go as far as possible, but you got that preliminary design report that we paid for and for better or worse, if you believe that number, they’re telling us there’s $36 million for the work that needs to be done.”
The city manager said the $30 capital surcharge is a maximum if interest rates hold steady and that the number could drop to between $20-25 before adoption of the ordinance from the city council.
“The public is reminded that council must have three readings of this ordinance and the public hearing before the new rates are adopted. Once again, I want to emphasize today’s agenda item is not a final action, and you’re not asked to pass that $30 surcharge as a final action,” Garretty said.
Garretty said having the surcharge marked on wastewater bills for customers is important.
“When we first started talking about this debt and I gave you some examples of it, I think it’s important to establish a fee category of the capital surcharge so that customers clearly see on a bill what they’re paying for with that portion of their bill is exclusively dedicated to the cost of rehabilitating the wastewater treatment fund,” he said.
Additionally, the proposal sets a maximum allow charge for sewer services not to exceed $69.27 per month and sets a rate for new residential customers at $65.11 per month until a usage history is established
The city manager said the 7% increase also impacts the city’s wholesale water customers.
“That affects Fort Belknap Water Supply Corporation and the Graham East Water Supply Corporation, and they do have the ability to appeal this rate to the Public Utilities Commission if they so desire,” Garretty said.
In October 2025, the city implemented new 7% increases to water and sewer rates after adoption by the city council in August 2025. The rate increase came following a 2024 water rate study that recommended a 7% per year increase in the rates through 2029.
If approved by the city council, the new rate changes would take effect Oct. 15, 2026.
