Water and sewer rates will increase to City of Allen customers in the coming month. Water rates will increase by approximately 6% for residential accounts, comprised of an 8% increase to the minimum water bill and a 2% increase to the volumetric rate*. Wastewater rates will increase by 8% for residential accounts*. These rates take effect Nov. 1.
The new rates will generate revenue that is already budgeted in the City’s Water and Sewer Fund for 2022. Allen’s Water and Sewer Fund is not supported by property taxes; it only receives revenue through charges to customers.
What influences the water and sewer rate?
Like many local cities, Allen purchases drinking water and the transport and treatment of wastewater (sewage) from North Texas Municipal Water District (NTMWD). NTMWD wholesale rates are driven by our booming population growth and supporting infrastructure. Though NTMWD wholesale water rates did not increase this year, NTMWD wastewater rates increased by 6%.
Likewise, the City of Allen adjusts water and sewer rates based on population growth and operational costs as a NTMWD member City. Due to continued growth in Allen, the City is facing operating cost increases as well as the need to fund maintenance and capital improvements to Allen's water and sewer systems. These operational and maintenance costs will result in an overall 6% increase*.
For residents with average water use, this change will increase combined water billings by approximately $6.94 per month*. For commercial accounts in Allen, the rate increases will result in an increase of approximately $31.16 per month for an average commercial usage of 50,000 gallons of water 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 Lake/Water Treatment Plant - $1.6 billion
- New wastewater treatment plant by 2023 - $500 million
- Lake Texoma Water Pipeline - $300 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:
- Hillside neighborhood sewer and water line replacement - $8 million (completed in FY20)
- Windridge neighborhood sewer and water line replacement - $12 million (ongoing)
- Stacy Road Pump Station rehabilitation - $5 million (project begins in 2022)
- Sloan Creek Regional Lift Station - $10.6 million (started in 2021)
- Routine citywide 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
Despite the water and sewer rate increases Allen customers have realized over the years, Allen customers with average water usage 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 $108.78 bill will increase to $115.27. The average Allen resident’s monthly water use is 9,500 gallons. See full rate schedule.