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Department: Budget & Performance Management
Director: Karen Rhodes-Whitley, Director of Budget & Performance Management
Agenda Item: Water & Sewer Rates for FY 2026-27
Recommended Action: Adoption of Ordinances
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Item Summary
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To amend Ordinance No. 2025-9-15 codified as Sections 21-135, 21-136 and 21-147, of Article IV, Service Charges Generally, of Chapter 21, Utilities, of the Code of Ordinances of the City of Plano, to increase the fee schedules for water and sewer services effective October 1, 2026; and providing a repealer clause, a severability clause, a savings clause, and an effective date.
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Previous Action/Presentation
The water & sewer rate increase was presented to City Council by NewGen Strategies & Solutions on Thursday, August 13, 2026, during the Budget Work Session.
Background
Effective Thursday, October 1, 2026, utility rates for the City of Plano's residential water and sewer services will increase. Customers are currently charged a minimum rate of $30.90 (1,000 gallons included) and this rate will increase to $33.40. The 1,001-5,000 gallons tier rate was previously charged less than what the City pays for wholesale water from the North Texas Municipal Water District. The City’s rate strategy included gradual increases over three years to bring the first billed tier rate up to the cost of wholesale water at $4.50. Higher volumetric water rates are increasing by 8%. Furthermore, sewer charges are also increasing by 8%. Your sewer bill is calculated based on your winter (December through February) water usage. This is known as your Winter Quarter Average and resets each year.
These changes are necessary for Plano to continue our high-quality services at the best value possible despite growing costs. Wholesale water and wastewater treatment, which are over two-thirds of our total water and wastewater expense annually, are increasing.
Financial Summary/Strategic Goals
Approval of this item will increase Water & Sewer Rev...
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