Austin Water Outlines Plan for Rate Increases to City Council

Austin, Texas – The residents of Austin, Texas may soon see a rise in their water bill as Austin Water is ready to propose a new plan for utility rate increases to the City Council. The proposal is expected to result in an average increase of 9.5 percent in residential rates, escalating the combined water and wastewater bill from $85 to $93.12 per month on average.

Details of the New Proposal

The proposed changes were announced last week after a slight increase of 3.3 percent was implemented last year to cover costs related to water treatment chemicals, staffing, and repairs to aging infrastructure. Austin Water now needs to fund more costly projects to keep up with the city’s ongoing expansion.

The key project includes substantial upgrades to the city’s Walnut Creek Treatment Plant, which processes most of the city’s wastewater before reintroducing it into the Colorado River system. Austin Water plans to expand the plant’s processing capacity from 75 million to 100 million gallons per day, with several upgrades to its treatment systems and flood resilience infrastructure.

Modifications to the Rate Design

The utility is also proposing changes to its rate design focusing on fixed fees based on five consumption tiers. Presently, residential customers in tiers 4 and 5, consuming over 11,000 gallons monthly, pay a flat fee of $29.75 per bill. However, under the new proposal, tier 4 customers would see a reduction in fixed fees to $23.04, whilst tier 5 customers would experience an increase to $34.79. This approach is aimed at relieving financial pressure on large families while maintaining conservation incentives.

Impact on Low-Income Customer Assistance Program Participants

Increases are also planned for the utility’s low-income Customer Assistance Program, with a projected rise in participants’ bills by 20 percent. For the average CAP customer, this results in an estimated monthly bill of $47.53, nearly an $8 increase from the current $39.60 average.

Rates for Nonresidential Consumers

Austin Water also plans to raise rates for nonresidential consumers with a 22.7 percent increase for commercial customers. The utility’s largest-scale consumers, including large corporations and the University of Texas, will see increases ranging from 18 to 18.2 percent. Moreover, residents in multifamily complexes will witness a fairly significant rise, with projected bill increases of approximately 16.8 percent.

Next Steps

These proposed rates will be discussed during the City Council’s budget season, with a final vote due in August. In the meantime, Austin Water continues to refine the details, with a presentation to the city’s Water and Wastewater Commission scheduled for Wednesday, July 17.

Interested members of the public can access recorded presentations detailing the proposed rates on the official SpeakUp Austin website.