[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6004375,"mediaKeyId","5834214-8ecf2a5be03cb9007b1813acc9f52741","parentId",5834214,"title","City warns of large possible water and sewer rate increases; consultant, TWDB loans cited","audioSeconds",1855,"startMs",996000,"endMs",2851000,"viewUrl","/Search/View?dp=1&key=5834214-8ecf2a5be03cb9007b1813acc9f52741&start=996&end=2851","thumbnailUrl","https://assets.pipeline.soar.com/5834214-8ecf2a5be03cb9007b1813acc9f52741/thumbnail_996000.jpg","articleUrl","/articles/6004375/Mineral-Wells/Palo-Pinto-County/Texas/City-warns-of-large-possible-water-and-sewer-rate-increases-consultant-TWDB-loans-cited","mediaUrl","https://secure.pipeline.soar.com/6004375-d651de62172c1b0d10126685a05c7934/orig.mp4?Expires=1771147680&Signature=DQ2p8KDX3rSFeEzI9TvXI3yhy5uCmwWy8evuN4HbXdYtBDHdtoLz-4Op~NCK1eVTwANt3qB6bMwkCMQlY1rXcc7hE7qLuseshhlUror8ml9-Xh7Tq2UxKrWP-WfS7g1fm-DyOsYhKz2OEDwDTVx1FCzvmXtW88xu6Fmt5Gzq91Z7KeZM1XvtL218iujFak~A-hYu4b5j87Rfpiuy5f9a4WTzSebAgP-C-K~dp2paeyap1g8tRw52WVUSb5tMRfKjW9518H-UaLOVmN0jDPA30e4~XudyR5c1lie6pAv7PuecZ6JOECMEUpcP0RaryT8Us8~FDVWTBLz2qA9RxrWcVQ__&Key-Pair-Id=KUT5TJCACFTXG","author","City of Mineral Wells, Texas","date","2025-08-20T00:00:00Z","article","Mineral Wells — City Manager Jason Weeks told the council that the city’s proposed water and sewer rate plan represents a “worst case scenario product” from the city’s consultant and warned that large increases may be required to cover new debt and water-purchase obligations. Using NewGen Strategies’ draft, residents with an average in-city winter usage (5,000 gallons of water and 4,800 gallons of wastewater) would see a combined water and sewer bill increase from $189.78 to $246.34 — a $56.56 or 29.8 percent increase in the monthly bill under the scenario presented.

Why it matters: The water and sewer fund is structurally stressed in FY2026. The city manager reported the water fund would end the year with a 17.8 percent fund balance (about 53 days of working capital), below the city policy target of 25 percent (90 days). Staff told councilors that nearly half of the water and sewer budget (49.3%, about $14 million) is payments to the water district for water purchases; other major costs include debt service related to capital-improvement projects and depreciation.

Details and debt plan: Weeks said the long-term capital plan includes a substantial Texas Water Development Board (TWDB) loan of about $49 million for the Hilltop water treatment project and additional open-market borrowing of roughly $13 million; combined new issuances and scheduled CIP work drive the higher revenue requirements in the rate model. Weeks said NewGen Strategies prepared the draft rate options and will present the full study at the Sept. 2 council meeting to explain methodology and offer alternative scenarios to the “worst case” numbers.

Impact on customers and timing: Based on the draft, the city would have to spread increases over multiple years to avoid immediate cash shortfalls; the long-range model in the presentation showed the water fund reaching positive excess fund balance only in year five of the plan under the current assumptions. Weeks also told the council that NuGen’s and the city’s model assumptions differ slightly but are within about a $1 million margin, and that staff will review alternative rate structures and potential grant or EDC contributions to reduce the burden on ratepayers.

Other actions and constraints: Staff described funding strategies that include staged rate adjustments (staff noted some modeled outer-year increases of roughly 8 percent in certain years), use of loan proceeds for capital purchases, potential EDC or TIF assistance for economically beneficial water projects, and a search for cost efficiencies (fleet leasing, internal audits, and contract reviews). Weeks emphasized that the presented numbers are conservative worst-case projections and that NewGen will present options that “would be less than what you see” later this month.

Ending: The water and sewer fund’s condition — low fund balance, planned debt issuance for major treatment projects, and large payments to the water district — put pressure on rates. The council will hear NewGen Strategies’ full presentation on Sept. 2 before making any rate decisions; staff and the consultant will present alternative scenarios and a capital and rate plan for council consideration before Sept. 16 public hearings.","mediaType","Video","parentTitle","City of Mineral Wells, Texas Special Budget Workshop Meeting 08/19/2025","oneSentenceSummary","City Manager Jason Weeks and staff described a worst-case utility-rate proposal that would raise a typical in-city residential water and sewer monthly bill by about 29.8% and outlined debt issuances, including a proposed Texas Water Development Board loan for Hilltop projects and open-market borrowing.","taxTitle","Mineral Wells, Palo Pinto County, Texas","taxId",64442,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6004380,"Mineral Wells presents FY2026 budget proposal while warning of multi-year shortfalls",1601,127000,1728000,"/Search/View?dp=1&key=5834214-8ecf2a5be03cb9007b1813acc9f52741&start=127&end=1728","https://assets.pipeline.soar.com/5834214-8ecf2a5be03cb9007b1813acc9f52741/thumbnail_127000.jpg","/articles/6004380/Mineral-Wells/Palo-Pinto-County/Texas/Mineral-Wells-presents-FY2026-budget-proposal-while-warning-of-multi-year-shortfalls","https://secure.pipeline.soar.com/6004380-ec04f6e4eae1382180ef0cdfd188e701/orig.mp4?Expires=1771147680&Signature=COX0dmW3Ur4ovC50yZSZLIJzsL1b~Hz6yHCTMfXR1JK5s3Jmtn4rVWzp20qM5wvJBTXN-xC6CX0YXU4EkuSnv3U1yzRVBESzlPaRnJkn6e-iL~TF1KBzvtdGvdo43g9QIkGKZi8hBv~8TL8YbrX~rHwpQQNSVz5TE5VjLsmS4Hz1rKuwKxWC~ZthH66H9wjJ3Fkm~uyncrVhPIS0DbPs~rZC3fDvRpHZb9NBqFClf8B-nTWJOt6vF0fgpZamTZ48C4xT5YsalfwCettF7~3QYQ0qxy2zjHJBZc8M4MALp4HJsFYCDCdl9kYxSsoJNJyUssdrkFq7jOZRnmWFap8dWg__&Key-Pair-Id=KUT5TJCACFTXG","Mineral Wells — City Manager Jason Weeks presented the proposed fiscal year 2026 budget at a council workshop, saying staff focused the plan on “getting back to the basics, and focusing strictly on public safety, our infrastructure, communications, transparency, and technology.” The proposed budget does not include a tax-rate increase and instead uses the voter approval rate; the presentation projects $57.3 million in total revenue and $61.4 million in total expenditures across all funds for FY2026.

Why it matters: Weeks warned the council that while the proposed FY2026 budget would leave the general fund above the city’s 25 percent policy (ending at 28.8 percent, or about 104 days of working capital), long-term projections show the general fund and other funds slipping into deficits in later years unless the city adopts additional revenue measures or cuts. The city is proposing no across-the-board salary adjustments in the adopted budget now and is holding potential personnel adjustments for midyear if audited revenues allow.

The most important facts first: the proposed FY2026 general fund budget includes $19 million in revenues and $20 million in expenditures, producing the 28.8 percent ending fund balance in the short term. Weeks told the council that the city’s prior-year estimates overstated revenues, leaving the audited FY2024 ending balance at $8.1 million rather than an estimated $10.4 million and contributing to an effective $2.2 million shortfall versus previous expectations. Weeks said the council had approved roughly $2.9 million in supplemental decision packages last year, about $500,000 of which are recurring costs such as new police and fire assignments, and those approvals have materially reduced available reserves.

Key revenue and cost drivers: Weeks described property tax revenue rising because of higher assessed values even as the rate slightly declines; he estimated the average homeowner following the proposed rate would see approximately a $21.53 change next year. Sales tax remains a major revenue source; the city’s total sales tax rate is 8.25 percent with the state taking 6.25 percentage points and the remainder split among the city, its economic development corporation and county allocations. The city budget factors in a one-time $1 million sale of the post office in the prior year and the end of a $426,000 SRO cost-sharing arrangement with Mineral Wells ISD, both of which reduce the base of carryforward revenue for FY2026.

Expenditures are concentrated in public safety and streets. Weeks noted that fire and EMS represent 23 percent of general fund expenditures, police 25 percent, and streets 17 percent — together 65 percent of the general fund. Personnel costs are 64 percent of general fund expenditures; the proposed budget adds four general-fund full-time equivalents (including an IT support specialist and three firefighters pending a SAFER grant) but does not include general salary increases in the baseline proposal.

Fiscal controls and next steps: Weeks described multiple management actions intended to improve fiscal discipline, including a new purchasing policy, department-level access to financial software (moving Encode to the cloud), a formal vacancy review process, monthly financial forecasting with variance analysis, internal audits focused on cost-savings, and a review of the master fee schedule. He said staff will finalize audited year-end numbers after the November 30 cutoff and could return to council with midyear amendments — including possible salary adjustments — if actual revenue and expense results warrant changes.

Process and schedule: Weeks said the city’s consultant NewGen Strategies will present the water/sewer rate study at the regular council meeting on Sept. 2, and the council will hold public hearings on the FY2026 budget and tax rate on Sept. 16. He urged council members to identify any desired budget changes before the Sept. 16 public hearing to avoid triggering additional hearings under the city charter.

Ending: The FY2026 proposal aims to hold near a flat tax burden this year while restricting supplemental spending to essential items, but Weeks told councilors the long-term outlook requires additional actions — either new revenue sources or reduced service levels — to prevent deficits in the later years of the five-year projection.","City Manager Jason Weeks presented a FY2026 budget that holds the tax rate effectively flat but projects multi-year deficits unless revenue or expense changes are made; the general fund ends FY2026 with a proposed 28.8% fund balance but long-range projections turn negative in later years.","actionData","errors"]

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City warns of large possible water and sewer rate increases; consultant, TWDB loans cited

Mineral Wells presents FY2026 budget proposal while warning of multi-year shortfalls