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1. Even though Fort Worth is increasing their rate, why does the City of Southlake have to raise our rates? Don’t you make enough money through taxes?

Consistent with the philosophy of self-supporting stable revenue streams, the intent of the Utility Fund is for the direct beneficiaries to pay for all costs of the fund, including debt service, through fees levied for the services provided. This allows the City to maintain and improve utility infrastructure without using tax revenue.

2. Why is Fort Worth raising the rate?

There are two key factors impacting Fort Worth water rates, raw water costs and revenue stability. Fort Worth purchases raw water from the Tarrant Regional Water District. Because of continual demand throughout the district due to population growth, TRWD developed an Integrated Pipeline project that will transport additional water from previously untapped reservoirs to Tarrant County. As the area continues to grow and the demand for water continues to increase, the distances from which water has to be piped to the customers continues to increase and pipelines and other facilities have to be built to bring the water to the local area. The cost of this project is the primary driver to increase costs of raw water to the City of Fort Worth. The second factor of revenue stability is to ensure that the water utility is self-sufficient, thus not relying on taxpayer dollars for subsidy. This is a key element considered by rating agencies when assigning bond ratings.

3. What does Fort Worth’s rate increase have to do with Southlake?

Southlake purchases our water from the City of Fort Worth wholesale, thus any increase in Fort Worth’s water rate impacts what the City of Southlake pays for water.

4. Did Southlake and other Cities like us have a say in the rate increase?

The City of Fort Worth identified the Retail Rate Structure Stakeholder Group for the purpose of allowing customers to voice their opinions. In addition, the Fort Worth Water Director requested input from all interested parties regarding the recommended rate increase.
The City of Southlake, along with other wholesale customers, maintains a constant line of communication with the City of Fort Worth Water Department through participation in an Advisory Committee. The committee’s responsibility is limited to an advisory capacity only.

5. How do they establish their water rates?

Fort Worth establishes its water rates based upon a Cost of Service Study that is conducted by a third party consultant. The study evaluates the various cost components that go into the production of the drinking water product. This study is provided to the Advisory Committee comprised of wholesale water customers, like Southlake.

6. Do you offer sewer averaging?

A: Yes. Sewer charges are based upon the average amount of water a household consumes during the winter months (November, December and January), when water consumption is generally the lowest. Sewer charges are recalculated once a year in the spring, this applies to Residential Accounts only. The City of Southlake is one of the few cities that offers sewer averaging as well as capping the sewer charge for 10,000 gallons used.