Learn More and Provide Feedback

Ver esta página en español

TMWA is proposing to raise water rates over the next three years. We know a higher water bill is not welcome news. That’s why we’d rather walk you through the reasoning in full than have you first learn about it from a change in your bill.

On this page you’ll find what the proposed increases would mean for a typical monthly bill, the specific infrastructure the money would pay for, why that work can’t be put off much longer, how borrowing helps keep the yearly increases smaller, and how TMWA’s rates compare with other utilities across the West. You’ll also find a schedule of public meetings, answers to the questions we expect you’ll have, and a form for your feedback.

That last part is the reason this page exists. TMWA’s Board of Directors has not approved these increases. It asked staff to bring the proposal to customers first and report back on what we hear. What you tell us becomes part of that report, and will help inform the Board on this important vote.

What is Being Proposed

Three annual increases, each taking effect on or about May 1:

What it Means on Your Bill

For a TMWA residential customer with average water use, the monthly bill would increase by roughly $3 in 2027, 2028 and 2029 — roughly 20 percent over three years. Your own bill depends on how much water you use. Seasonality plays a role – higher bills in the summer mean a larger increase, but lower bills in the winter mean a smaller increase. The average is about $3 over the course of the year.

The examples below show how different monthly water bills would change under the proposed rate increases of 7% in 2027, 7% in 2028 and 5% in 2029.

What the Money Pays For

The proposed rate increases are needed to maintain the reliability of TMWA’s water system by allowing continued investment in critical existing infrastructure (water treatment plants, booster pump stations, water tanks, and wells). These increases do not fund any expansion in the TMWA system. New development (growth) pays for itself through connection fees. Here are a few examples of existing infrastructure requiring investment:

Chalk Bluff Water Treatment Plant: Commissioned in 1996, the Chalk Bluff Water Treatment Plant produces about 80 percent of the water TMWA delivers. Though still producing high-quality water, the plant is starting to show its age. Issues include heating and cooling equipment that’s nearing the end of its service life, chemical-storage tanks and treatment equipment that need replacement and an electrical system that relies on components that, in some cases, are no longer manufactured. The liners in the plant’s ponds have also aged out and must be replaced to safely retain treated water.

Booster pump stations: A number of TMWA’s booster pump stations sit below grade, where they corrode. This presents both maintenance and safety problems that have led state regulators to require bringing them above ground.

Water Mains and Storage Tanks: TMWA’s water mains and storage tanks need continuous rehab and replacement. TMWA plans to replace, rehab and make improvements to existing storage tanks and water mains totaling approximately $140 million over the next 5 years.

Read the full FY2027–2031 Capital Improvement Plan

Power loss mitigation: This includes generators and related infrastructure that keep treatment and pumping equipment running during wildfire-related outages and other power-grid events. Water pressure for firefighting depends on it.

Altogether the plan funds roughly $210 million in rehabilitation and replacement work over five years, starting at about $38 million in FY2027.

Why Now?

Most of TMWA’s tanks, wells, booster pump stations and pressure-reducing stations were built during two decades of rapid regional growth in the 1990s and 2000s. That equipment is now 25 to 35 years old — the typical point at which major renewal is required rather than routine maintenance.

Over the past three years TMWA has invested about $157 million in renewal and replacement. Day-to-day operating costs are not the driver here; operations and maintenance is estimated to grow at about 4 percent a year, in line with inflation. What’s outpacing revenue is capital reinvestment.

 Rates and Inflation

Since 2018, TMWA’s rates have risen about 25 percent. Over the same period consumer prices rose about 39 percent and construction costs rose about 45 percent. Construction costs, not general inflation, determine what it costs to rebuild a water system.

 Why we Propose Borrowing as Well as Raising Rates

The plan pairs the proposed rate increases with approximately $50 million in new water-revenue bonds. Through this borrowing we can spread the cost of long-lived assets across the decades in which customers will actually use them. It also helps minimize the yearly increases. Without the bonds, reaching the same funding requirement would take increases of 10, 10 and 8 percent over the same three years — about 31 percent instead of about 20.

Issuing this debt now is more attractive because TMWA has been paying down debt systematically since 2018. During that period TMWA has retired about $162 million. So, the proposed bond issuance would only set back our overall paydown strategy by a couple of years. If the Board approves this approach, the total outstanding debt would still only sit near its 2024–2025 level.

It bears mentioning that this bond issuance will require a separate decision. Its structure, size and timing will be developed over FY2027 and brought back to the Board for its own approval.

How TMWA Compares

Public Meetings

Four meetings in November — two in-person open houses and two on Zoom. The open houses are drop-in: come any time during the session and talk with staff one-on-one. The Zoom sessions include a short presentation followed by moderated questions.

Two evening sessions and two midday sessions, so there’s an option whatever your schedule looks like.

A Spanish-speaking staff member is available at every meeting to answer questions in Spanish.

What happens next