BEFORE ADOPTION ARTICLE - to be published in this week's newsletter. The newsletter gets linked on Facebook, too.
Water Rates: Understanding Proposed Changes
Rising costs are frustrating. That’s true whether you’re paying household bills or trying to manage essential services for a community. It can feel especially difficult when utility costs increase, because water is a basic service everyone relies on every day.
Water utilities are funded differently than other city services. Water rates are restricted to paying for the water system itself. They cannot be supplemented by property taxes, sales tax, or other revenue sources. When the cost of operating and maintaining the system increases, water rates are the only mechanism available to address those costs.
City finances often require balancing two competing responsibilities: protecting the pocketbooks of residents while charging enough to cover the true cost of providing services. Water service sits squarely in the middle of that balance. It is essential, heavily regulated, and more complex to fund than it may appear on the surface. For several years, the City has worked to maintain affordability while still meeting those responsibilities.
A recent Water Rate and Cost of Service Study conducted by Raftelis showed that current water rates no longer fully cover the cost of providing service. In previous years, reserves were used to help absorb the difference and minimize customer impact. Over time, relying on reserves for ongoing costs reduces the City’s ability to plan for aging infrastructure and respond to major system needs.
The study provides the City Commission with a clear picture of what it costs to operate and maintain the water system and outlines options for addressing those costs over time. City officials are using this information to evaluate potential phased rate adjustments intended to balance system needs with customer impact.
The proposed rate structure will be presented to the City Commission for adoption during the February 9, 2026, regular meeting, beginning at 4:00 p.m. at the Abilene Public Library (204 NW 4th). Meetings are also live-streamed on YouTube and available for immediate replay. Agenda packets with all supporting documents are available online at www.abilenecityhall.com/agendacenter.
Additional information, including a summary of the proposed rate structure and examples showing how changes may affect a typical residential bill, is available for those interested in learning more. View an example of how a residential bill may be impacted.
Current rates are available for review online at https://www.abilenecityhall.com/770/Water-Department.
Disclaimer:
To complete a full review of the City’s utilities, a separate sewer rate study has also been completed and is scheduled to be presented to the City Commission later this year. Additional information will be shared as that discussion moves forward.
↑ Back to top
AFTER ADOPTION ARTICLE - to be posted in February 13 newsletter. The newsletter gets linked on Facebook, too.
Water Rate Changes Approved – What This Means for Customers
Ordinance ______ was adopted during the February 9, 2026, City Commission meeting held at that Abilene Public Library at 4:00 p.m. As a result, city water customers should expect their March 15, 2026, bill to reflect an increase in their water usage rates.
Rising costs are frustrating. That’s true whether you’re paying household bills or trying to manage essential services for a community. It can feel especially difficult when utility costs increase, because water is a basic service everyone relies on every day.
Water utilities are funded differently than other city services. Water rates are restricted to paying for the water system itself. They cannot be supplemented by property taxes, sales tax, or other revenue sources. When the cost of operating and maintaining the system increases, water rates are the only mechanism available to address those costs.
City finances often require balancing two competing responsibilities: protecting the pocketbooks of residents while charging enough to cover the true cost of providing services. Water service sits squarely in the middle of that balance. It is essential, heavily regulated, and more complex to fund than it may appear on the surface. For several years, the City has worked to maintain affordability while still meeting those responsibilities.
The recent Water Rate and Cost of Service Study conducted by Raftelis showed that water rates no longer fully cover the cost of providing service. In previous years, reserves were used to help absorb the difference and minimize customer impact. Over time, relying on reserves for ongoing costs reduced the ability to plan for aging infrastructure and respond to major system needs.
The study provided the City Commission with a clear picture of what it costs to operate and maintain the water system and helped guide this difficult decision with the intent of balancing system needs with customer impact.
Additional information, including a summary of the adopted rate structure and examples showing how changes may affect a typical residential bill, is available for those interested in learning more. View an example of how a residential bill is impacted.
Current rates are available for review online at https://www.abilenecityhall.com/770/Water-Department. Disclaimer:
To complete a full review of the City’s utilities, a separate sewer rate study has also been completed and is scheduled to be presented to the City Commission on March 9, 2026. Additional information will be shared as that discussion moves forward.
↑ Back to top
STAFF TALKING POINTS
Here's the attachment for staff: https://www.abilenecityhall.com/DocumentCenter/View/5739/Water-Rates---Staff-Talking-Points
