Round Rock residents will face higher electricity and gas bills starting November 1. The City Council approved the first reading of the proposed increase at its August 22 meeting as part of the ongoing budget process.

What residents need to know

Utilities Director Michael Thane recommended a 5% increase in base rates for water and 6% for sewer for all customers over the next three years. The meter-based increase is intended to mitigate the one-year price shock, Thane said.

The city is also proposing changes to the water rate structure by creating a “super” tier. For an average household, the base rate would be $17.35 per month, with costs increasing for 5 tiers from 5,000 to 10,000 gallons. The highest tier would cost $6.85 per 1,000 gallons over 34,000 gallons.

Currently, 14.4% of customers use 40% of Round Rock’s residential water, city documents show.

Wastewater is billed at a fixed rate based on average winter usage. For the next year, the base rate is $14.07 per month, plus an additional $3.15 per thousand gallons of usage.

Stormwater fees would increase by $2 this year, from $4.75 to $6.75, with the next increase expected in fiscal year 2028.

The big picture

Water consumption in private households peaks during the summer heat. The city needs to expand its infrastructure to meet this seasonal consumption, Thane said.

“Environmental protection has become a really big issue and that’s why you’ll see some changes in our tariff structure,” Thane said.

Rising costs, such as salaries and chemicals, as well as infrastructure projects planned over the next five years also contribute to the need to increase water and wastewater revenues, according to the city.

Water retail prices and structure were reviewed in 2017 and increased in both 2017 and 2018. When prices were reviewed again in 2021, there were no structural changes or increases. The proposed increase for the coming financial year follows a new study of service costs this spring.

What happens next?

Two public readings are required to pass the rate increase, and the council will hold a final vote at its Sept. 12 meeting.