Rowlett City Council Discusses Water Rate Increases and Fund Balance Strategies

The Rowlett City Council convened on July 12, 2025, to discuss critical issues affecting the community, particularly focusing on water and sewer rates, as well as refuse services. A significant topic of discussion was the potential impact of rising costs from the North Texas Municipal Water District and the City of Garland on local water rates.

City officials highlighted the importance of maintaining a healthy bond rating, which is crucial for managing the city's debt and ensuring lower interest rates on future bonds. The current bond rating is at a double A negative, and any further decline could lead to increased costs for residents. The council is considering various scenarios for adjusting water rates to address these financial pressures, with a focus on balancing the needs of residents and the financial health of the city.

One proposed scenario involves increasing water rates by approximately 7.5% to cover rising operational costs and maintain the bond rating. This increase would be structured to ensure that higher volume users contribute more, while also considering the financial burden on lower volume users, particularly seniors on fixed incomes. The council is weighing the fairness of shifting some costs to commercial users, who have more flexibility to adjust their prices.

In addition to water rates, the council discussed refuse services, which have also seen increased costs due to changes in service frequency and inflation. Options for adjusting refuse rates were presented, with recommendations to gradually increase rates while building a more robust fund balance to cushion against future financial uncertainties.

The council emphasized the need for clear communication with residents regarding these changes, ensuring that the community understands the rationale behind rate increases and the long-term benefits of maintaining a strong financial position. As the meeting concluded, the council expressed a commitment to making informed decisions that balance fiscal responsibility with the needs of Rowlett residents.