Council hears multi‑year water and wastewater rate proposal; first reading approved

City utility staff presented a three‑year water and wastewater rate recommendation and the council approved the rate ordinance on first reading.

Michael explained Round Rock’s cost‑of‑service model and said retail water rates will be adjusted over three years to recover an estimated $4.6 million on the water side and $2.3 million for wastewater over the same period. He emphasized the proposal keeps the existing tier structure and targets higher increases in upper residential tiers and for wholesale customers that had not seen recent adjustments. “We used 32,000,000 gallons yesterday in the city,” Michael told the council as part of a broader discussion about demand, seasonal peaks and infrastructure needs.

Staff said increases are driven by salary and O&M pressures, raw water costs, chemical and electrical contract changes and debt service tied to regional projects and plant expansions. The council completed the required first reading; staff will return Sept. 10 for a second reading and potential final adoption with an effective date of Nov. 1 if approved.