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City Council meeting discussing Pflugerville utility fee increases

Pflugerville Utility Fee Increases Projected for Residents

News Summary

Pflugerville city officials have announced potential increases in utility fees that could significantly raise monthly bills for residents by 2026. The average water bill is set to rise from $192.75 to $211.85, while wastewater service charges are also expected to increase. Council members have expressed concerns over the financial impact of these proposed rates, primarily driven by rising debt payments and the ongoing construction of the Wilbarger Creek Regional Wastewater Treatment Facility. Residents have also raised issues regarding previously unexpected spikes in their water bills.

Pflugerville city officials presented projections on Tuesday regarding potential utility fee increases for residents, indicating that monthly utility bills could rise significantly by the year 2026. The City Council was informed that the increases are driven by the city’s utility fund management, which encompasses separate accounts for water, wastewater, solid waste, utility capital projects, and debt service.

According to Finance Director Tracy Waldron’s presentation, the average resident’s water bill is projected to increase from $192.75 to $211.85 per month. Additionally, residents with a standard five-eighths-of-an-inch water meter can expect their base fee to rise from $45 to $50 per month. Meanwhile, the base charge for wastewater services is anticipated to increase from $55 to $65 per month. The volume charge for wastewater, calculated per 1,000 gallons, could see an increase from $6.10 to $6.50 per 1,000 gallons of usage.

In contrast, rates for trash and recycling services, currently set at $22.37 per month, are not expected to rise in the upcoming fiscal year. This comes as a relief to some residents amid the other proposed increases.

The projected increase in utility fees is largely tied to the ongoing construction of the Wilbarger Creek Regional Wastewater Treatment Facility, which necessitates funding through higher rates. The overall proposed expenditure budget for the 2026 fiscal year is $63.3 million, reflecting an increase from the $56.1 million budget of 2025. Key drivers of this budget increase include the hiring of 14 personnel for the new wastewater facility and significant escalations in annual debt payments.

The city’s current annual debt payment stands at $22 million, which is projected to double by 2027 and even triple by 2029. Council Member Melody Ryan has expressed concerns regarding the financial implications of the projected rate increases, suggesting that the city utilize its surplus fund balance to maintain stable rates. However, Waldron clarified that there is a need to generate a consistent level of revenue to cover essential debt obligations, and relying solely on the fund balance could jeopardize this financial stability.

The proposed increases in utility rates are seen by some city officials as a necessary measure to ensure the city can manage rising debt payments and minimize the need for additional debt. Higher revenues may allow the city to use cash for covering debt obligations rather than resorting to further borrowing.

In addition, some residents have recently voiced their concerns regarding artificial spikes in their water bills. Reports from the Meadows of Blackhawk indicated unexpected increases in water usage and subsequent charges. However, Crossroads Utility Services assessed meter readings for these residents and confirmed that no issues were found that would justify the unusually high bills.

The situation continues to unfold as the Pflugerville City Council carefully weighs the implications of the proposed utility fee increases against the financial sustainability of essential services for their residents. The City Council will hold further discussions to address the community’s concerns and evaluate the budgetary adjustments before finalizing decisions on the fee increases.

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