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HomeDEPARTMENTSUtility Billing...IMAGE...Frequently Asked Questions about Water Rates > Why Does My Water and Sewer Cost More than in Other Cities?

Why Does My Water and Sewer Cost More than in Other Cities?

We are often asked why Melissa's water and wastewater rates are "higher than those of other cities". When comparing rates to those of other cities, one must take factors such as the number of households (accounts), the maturity and/or sophistication of the cities' utility infrastructure and rate of growth into consideration.

Population has more to do with rates that most people might realize. Water and sewer construction and improvements are needed in all communities. In Melissa those costs are only spread over 3,000 accounts whereas in McKinney they are spread over approximately 50,000 accounts. That is a big impact on sharing the costs of a growing community. With that growth in users comes not only an increase in revenue from utility sales but also the costs associated with expanding utility infrastructure and the associated maintenance and operations costs required to serve the needs of a growing population.
NTMWD Members & Customer CitiesAdditionally, a number of larger more established cities are not experiencing comparable growth and are not actively investing in expanding their infrastructure. Those cities are in most cases primarily concerned with operations and maintenance costs as opposed to capital improvements and/or new infrastructure costs. Melissa is essentially still in the very early stages of building our City and with that comes up front cost for benefits to be realized in the future. 

Finally, the district’s dual membership categories are an additional factor that causes the cost for an equal amount of water used by a customer to vary so greatly from city to city. Melissa is a Customer City of NTMWD, and Customer Cities currently pay a five-cent per thousand gallons premium on top of the Member City wholesale water rate.

NTMWD member cities include larger Collin County cities such as Allen, Frisco, McKinney, Plano, and Richardson among others shown in Figure above.


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