Dripping Springs adopts wastewater rate changes and approves sludge‑thickening design to fund plant expansion

Dripping Springs on May 19 adopted a revised wastewater rate ordinance and approved a new design phase for a sludge thickening and storage facility intended to support the South Regional Water Reclamation Facility expansion.

City staff and consultants told council that a combination of delayed permitting, higher construction costs and the planned simultaneous delivery of phases one and two of the new plant created a funding gap that requires rate adjustments and additional planning. Sean, the staff presenter, said the city’s debt service for the utility fund will rise sharply in 2028–29 when principal and interest payments begin on a planned water‑development loan and that the adopted scenario includes a $2.5 million general‑fund contribution to damp rate increases.

The council also approved Task Order No. 5 with Carollo Engineers for final design of a recuperative thickening and sludge storage facility, with a design budget not to exceed $199,822. Staff said the new design replaces a footprint of nine sludge boxes with an automated bolted‑steel tank and a volute thickener to reduce wet hauling and 24/7 staffing demands, reduce odors and provide redundancy as the plant scales to future phases. "This design will allow more permanent and automated operation, reduce hauls per week and improve reliability," the project presenter said during the staff update.

Council members pressed staff on operational assumptions and potential savings. Staff said current wet‑haul operations average about seven hauls per day and that engineers estimate the new system can maintain that haul frequency while accommodating additional capacity across phases. The presenter described the intended bid schedule: 100% design review in late May, advertising in mid‑June and a council review of bids around July 21.

On rates, staff presented scenarios developed with HDR that model reserve requirements, growth and debt service. The council adopted the scenario discussed May 13 (referred to as scenario 513 in staff materials), which reduces the proposed near‑term rate pressure by pairing rate adjustments with the $2.5 million general fund boost. Sean said staff expects to benchmark actual results and report back about a year after implementation to determine whether assumptions match real revenue and expense trends.

Council directed staff to implement a customer notification and outreach plan ahead of the rate change; staff recommended a roughly 90‑day notification window to allow multiple billing cycles and direct contact with the system’s largest customers. "We'd like more time rather than less time to communicate the rate change before it takes effect," the presenter said; councilmembers agreed to targeted outreach to the highest‑use accounts and to develop an assistance or payment plan approach for customers who may struggle with the increase.

The ordinance passed on a voice vote; staff will post formal notices and work with billing and communications staff to publish FAQs, sample calculations and targeted notices to major water users. The council also asked staff to continue refining the rate model and to return with annual updates during the budget process.