Water Rates Explained

The City of Allen purchases water and wastewater services from the North Texas Municipal Water District and then delivers it to Allen residents. Even though NTMWD has increased its rate for purchase over the last few years, Allen has not passed the cost onto Allen residents since Feb. 2015. In 2017, NTMWD projected a rate increase of about 10% per year for the next five years which prompted an increase in water rates for Allen residents beginning Nov. 1, 2017. Even with this increase, Allen residents continue to pay a lower rate than neighbors in Frisco, McKinney, Plano and Richardson, and the rate is still significantly lower than the state average.

NTMWD water rate increases are the result of a $3.7 billion capital improvement plan underway
to address these key drivers: 

  • Population Growth - Est. 2.6 Million by 2040
    • New water supply sources are needed to meet the needs of the growing
      population in North Texas region.
  • Aging Infrastructure - System Maintenance
    • As water and wastewater facilities age, upgrades and expansions are
      needed to ensure efficient service.
  • Public Health - Increased Regulations
    • Safeguarding the public health requires additional resources to
      meet regulatory requirements.

In FY18, the City of Allen water and sewer fund had an operational budget of $41,482,328.
Of this total, approximately 64% of the budget went to the North Texas Municipal Water District
to pay for our provision of treated water and the treatment of the City’s wastewater.

To learn more about NTMWD and the rising cost of water/wastewater services,
visit NTMWD.com/Water-Rates-Pay-MoreThanWater.

Community Services Director Steve Massey shared an in depth presentation to Allen City Council at the September 12, 2017, Regular Meeting. Watch the video for full details on how the rising water and wastewater costs prompted Allen City Council to approve the increase in customer water and sewer rates.

In the presentation, Mr. Massey explains how the rate increase reflects changes in the wholesale water and wastewater rates paid by the City of Allen, along with increased maintenance and technology costs. Wholesale water rates have risen steadily since 2015, but a sufficient balance in the City’s Water/Sewer Fund allowed Allen to absorb the cost without a rate increase in the last two years. Key drivers of NTMWD rate increases include population growth, upgrades to aging infrastructure and higher public health standards set through state and federal regulations.

The rate increase was effective November 1, 2017 and reflected in utility bills mailed to customers in late November and December.

By the Numbers

Check out these quick highlights on what it takes a vast network of infrastructure to provide safe water to over 98,000 residents and numerous commercial customers.


The City of Allen provides water, sewer, drainage, trash and recycling services to Allen residents and businesses. Utility Billing, a division of the Community Services Department, is responsible for customer services related to these utilities. This includes initiating and terminating services and all billing and collection services. Customers are billed on a monthly basis. For more information, contact 214.509.4560.

Return to the Utility Billing homepage.