The City of Allen will not increase water rates to City customers in the coming year. Wastewater rates will increase by 5 percent, or approximately $2.82 per month for residential accounts*. These rates will be effective Nov. 1.
Why are water rates remaining unchanged, but wastewater rates increasing?
Like many North Texas cities, Allen purchases drinking water and the transport and treatment of wastewater (sewage) from North Texas Municipal Water District (NTMWD). This year, for the first time in 15 years, NTMWD’s wholesale water rates will not change. Wholesale water rates remaining stable allows the City to also keep its water rates the same.
However, the water district’s wholesale wastewater rates are increasing by 7 percent. This NTMWD wastewater increase translates to a 5 percent City wastewater rate increase. For residents with average water use, this change will increase wastewater billings by approximately $2.82 per month*. For commercial accounts in Allen, the wastewater/sewer rate increase will result in an increase of approximately $12.54 per month for an average commercial usage of 50,000 gallons per month.
NTMWD continues to move forward with its capital improvement projects in its water and wastewater service area that currently serves a growing population of over 1.7 million customers. Notable NTMWD projects include:
- New Bois d’Arc Lake project - $ 1.6 billion
- New wastewater treatment plant - $500 million
- Lake Texoma water pipeline - $300 million
- Treated water ground storage tanks - $27 million
Recent and upcoming City of Allen wastewater and water replacement and maintenance projects that are made possible by Allen’s Water and Sewer Fund include:
- Sloan Creek Regional Lift Station- $10.6 million (project begins in FY21)
- Hillside neighborhood sewer and water line replacement - $8 million (completion in FY21)
- Windridge neighborhood sewer and water line replacement - $12 million (project begins in 2021)
- Stacy Road pump station rehabilitation - $5 million (project begins in 2021)
- Routine city-wide maintenance projects to water pump stations, wastewater lift stations, water ground and elevated storage tanks, and water and sewer lines- $30 million over the next 10 years
Allen’s Water and Sewer Fund is not supported by property taxes; it only receives revenue through charges to customers
Despite the water and sewer rate increases Allen customers have realized over the years, Allen customers will continue to pay a lower rate than neighbors in every NTMWD member city, including Frisco, Plano, Richardson and McKinney.
Watch the Council meeting presentation.
*For residential accounts using 10,000 gallons of water per month, the current $105.95 bill will increase to $108.78. The average Allen resident’s monthly water use is 9,780 gallons. See full rate schedule.