Consider and act upon the second reading of Ordinance 2026-09; an ordinance of the Town of Sunnyvale, Texas (Town), amending Appendix A, "Fee Schedule", Article A5.000, "Utility Related Fees", Section A5.004, "Water Rates", and Section A5.005 "Wastewater Rates" in the code of ordinances to adopt new water rates, and wastewater rates; providing for incorporation of premises; providing for amendments; repealing any ordinance in conflict with the ordinance; providing for severability; and providing an effective date.
Staff recommends approval.
The Town hired NewGen Strategies & Solutions, LLC to conduct a fee study for the purpose of updating the water and sewer rates. This was presented to Council during the budget workshop on May 16, 2026. The study ensures rates will be sufficient to 1) meet rising operating costs of 7.4% per year to FY 2031, 2) fund capital projects, 3) maintain adequate reserves, and 4) meet debt service coverage targets. Key assumptions used to produce the five-year forecast include general inflation of 2.8% per year, wholesale rate increases, and construction cost increases of 3.1% per year. Also included were an anticipated growth of 50 new water and sewer connections per year. This ordinance will adopt the new rates as outlined in the attached proposed water and sewer rates document.
The FY 2026-2027 proposed rates include an 8.5% increase over prior year for a total of $892,147 in additional revenue toward the water and sewer fund.