Pflugerville advances water and wastewater rate overhaul to shift burden to high-volume and multifamily users

Pflugerville advances water and wastewater rate overhaul to shift burden to high-volume and multifamily usersA revised rate study recommends lowering residential water bills for three-quarters of customers while significantly adjusting wastewater base charges by meter size to correct historical inequities.

A proposed two-tier residential water structure will yield an estimated $450 in annual savings for low-volume users.

Approximately 77% of residential customers use 8,000 gallons or less per month and will see no increase or a decrease in their bills.

Wastewater base charges will transition from a flat fee to a meter-size-based structure, effectively doubling costs for apartment complexes.

City staff will begin publicizing the proposed rates ahead of an anticipated October 1 implementation date.

The Pflugerville City Council is moving forward with a substantially revised water and wastewater rate structure designed to improve equity among customer classes and incentivize water conservation. During an August 11 worksession, city staff and council members reviewed an updated proposal from rate consultant Baker Tilly that shifts the utility's volume charges from a usage-based tier system to a customer-class-based tier system. The most significant change for residential customers is the introduction of a two-tier water rate structure that shields average consumers from rate hikes. According to city staff, 77% of the city's residential customers use 8,000 gallons or less per month. Under the proposed model, these low-to-average users will experience either no increase or a significant decrease in their monthly bills, with low users projected to save approximately $450 annually. Conversely, the top 23% of users who exceed the 8,000-gallon threshold will face higher rates year-round, which council members noted will serve as a strong conservation signal. On the wastewater side, the city is implementing a major structural shift by transitioning from a single base charge for all meters to a base charge determined by meter size. This adjustment aims to correct historical inequities that heavily subsidized multifamily and commercial users. Under the current structure, a 300-unit apartment complex might pay a disproportionately low wastewater rate despite the city's demographic shift from an 80/20 to a 70/30 ratio of single-family to multifamily housing over the past four years. The new structure will essentially double the wastewater charges for apartments, bringing them closer in line with actual system impacts, though their rates will remain slightly below single-family residential levels. Commercial users, including fast food and big box retailers, will also see increased wastewater bills. Council members praised the revised proposal as a massive improvement over earlier drafts, highlighting its protection of fixed-income residents and its more equitable distribution of system costs. Staff noted that while the water rate targets a two-tier structure, wastewater will remain a single tier because it represents net water not consumed on the property, typically calculated using winter averaging to exclude irrigation usage. While wholesale wastewater rates governed by long-term municipal utility district contracts remain locked until the 2030s, the city plans to evaluate its retail rates annually to adjust for changes in consumption behavior triggered by the new pricing. With the council's consensus, city staff will immediately begin a targeted public communications campaign for the affected commercial and multifamily property owners. The final rate study report will be presented by Baker Tilly on August 25, with the new rates expected to take effect on October 1.