How are water rates established each year through the Water Rate Study?

The Water Rate Study is an accumulation of over 200 man-hours of staff members, City Engineer, City Manager, Mayor and Council. The following are some of the variables that are considered and included in reviewing current rates and developing proposed rates: 

  • 3 different water supplies, North Texas Municipal Water District (NTMWD), Collin Grayson Municipal Alliance (CGMA), and well water
  • Consumption sold
  • Debt reallocation based on usage for CGMA bond structure
  • Department budgets estimated expenses for the current year
  • Department budgets proposed expenses for the new year
  • Different water costs per 1,000 per gallons
  • An estimate of remaining sales for the current year based on trends
  • Growth of meters
  • Minimum Take or Pay contracts
  • New capital projects
  • Percentage of distribution per tier levels
  • Rate structure option
  • Usage trends
  • The wholesale flow of water and wastewater
  • Winter Quarter Average trends

The following is a pie chart of the 6 components of the rates. The rates are not just the wholesale costs. The Water Fund is a non-profit fund; therefore, the rates only cover costs to cover Fund expenses.

08-2018 Water Rate Pie Chart

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1. What type of water meter does the city use?
2. How does my meter work?
3. How can I check for a leak?
4. How can I test my meter for accuracy?
5. I've conducted my own bucket test and I still don't believe my meter is working properly. What are my options?
6. Do mechanical meters slow down or speed up over a lifespan?
7. What is Advanced Metering Infrastructure (AMI)?
8. How does the Advanced Metering Infrastructure (AMI) system work with my meter?
9. Is the Meter Transmission Unit (MTU) a meter?
10. How can I test my Meter Transmission Unit (MTU) for accuracy?
11. If the City had irrigation-specific water meters, would it help my sewer bill?
12. Will the City consider extending the leak adjustment application acceptance window to longer than within 30 days of the leak repair?
13. How are water rates established each year through the Water Rate Study?
14. What is a "take or pay" contract?
15. Why use a tiered rate structure?