The Austin Water and Wastewater Commission meeting on July 16, 2025, focused on significant financial strategies and upcoming rate adjustments aimed at enhancing the city's water and wastewater infrastructure. Key discussions included the effectiveness of debt management strategies, projected bill impacts for residents, and the ongoing support for vulnerable customers through the Customer Assistance Program (CAP).

The commission highlighted impressive debt savings of $625 million achieved through various financial maneuvers, including defeasance transactions and low-interest loans. These savings have allowed the city to avoid recovering approximately $1.1 billion from customers, showcasing the effectiveness of their debt management efforts. However, as the city expands its capital improvement plan, which has grown to nearly $2.7 billion, the commission anticipates an increase in debt service requirements.

Residents can expect to see changes in their water and wastewater bills. Water rates are projected to rise by 4%, while wastewater rates will increase by 13%. For the average non-CAP residential customer, this translates to an additional $8.71 per month, or about $0.29 per day. The commission emphasized that despite these increases, the cost of water remains low, with a gallon costing less than a penny.

The CAP, which supports over 54,000 vulnerable customers, will also see adjustments. Participants in the program will experience an average monthly increase of $5.50, maintaining a discount of around 52% on their water bills.

Looking ahead, the city manager's proposed budget outlines a two-year plan that addresses the growing capital improvement needs. The commission acknowledged that while rate increases are necessary in the short term to support infrastructure investments, future adjustments may stabilize to align more closely with inflation.

Overall, the meeting underscored the commission's commitment to managing debt effectively while ensuring that essential services remain accessible to all residents, particularly those in need. The discussions set the stage for ongoing financial planning as Austin continues to develop its water and wastewater systems.