Irving approves water and sewer rate hikes to fund $55 million CIP and rising treatment costs

Irving approves water and sewer rate hikes to fund $55 million CIP and rising treatment costsThe Texas municipality has authorized a 2.92% increase in water rates and a 7.05% hike in sewer rates to support infrastructure upgrades and offset escalating pass-through costs from the Trinity River Authority.

The rate adjustments are projected to boost utility revenues to approximately $158.4 million for the 2026-2027 fiscal year.

The $55.2 million Capital Improvement Program will be funded through a combination of $23.2 million in cash and $32 million in bonds.

The council also approved the second incremental increase in its five-year Municipal Drainage Utility rate plan to address regulatory requirements and system improvements.

Average residential customers will see an overall monthly bill increase of just over 4%.

The Irving City Council has unanimously approved new monthly water, sewer, and drainage rates for the 2026-2027 fiscal year, aimed at funding major infrastructure investments and covering escalating operational expenses. The approved ordinance implements a 2.92% increase for water rates and a 7.05% increase for sewer rates. According to city documents, the primary driver for the sewer rate hike is the increasing pass-through cost for contracted wastewater treatment services provided by the Trinity River Authority. Additional revenue is also required to address software upgrades and rising costs for repair and replacement materials. The rate adjustments are projected to bring total utility revenues to approximately $158.4 million, balancing the proposed budget of the same amount. This budget includes a $55.2 million Capital Improvement Program (CIP), which the city plans to fund utilizing $23.2 million in cash and $32 million in bonds. Under the new rate structure, the monthly bill for an average residential customer using 12,000 gallons of water and 5,000 gallons of wastewater will increase by $3.78, representing a 4.11% overall rise. In a separate but related action, the council approved an ordinance setting a new schedule of drainage charges. This represents the second incremental increase under a five-year Municipal Drainage Utility Rate Plan approved in June 2024. The drainage fee hikes are designed to provide a dedicated funding source for growing regulatory requirements and continued flood mitigation improvements to the city's stormwater drainage system. Reflecting this ongoing infrastructure investment, the council also approved several major water and drainage contracts during the same meeting. These included a $1.9 million contract with SYB Construction Company for the Skyway Circle South water and wastewater pipeline replacement project, and a $4.2 million engineering addendum with Pape Dawson Engineers for Phase 2 of the North Delaware Creek Drainage Improvements Project. Both the water and sewer rate increases and the new drainage charges will go into effect on October 1, 2026.