Utility Cost Structure

Delivery of the City's utility services (water / wastewater) is solely funded by revenues derived by rates charged to customers. Rate structures have been established with primary objective to provide sufficient revenues to operate system, within scope of achieving fairness - also with secondary consideration of conservation. 

 There are two major cost components associated with the Utility System: 
  1. Purchase of wholesale water and wholesale wastewater treatment - this is provided by the Upper Trinity Regional Water District (UTRWD)
    - Contracted water purchases of 3 Million Gallons of water per day
    - Contracted sewer treatment of 1.65 Million Gallons of wastewater per day
  2. Maintenance of the water and wastewater distribution system. In addition to the miles of water and sewer lines, this includes:
    - Five water wells with capacity of 4.2M gallons per day 
    - Ten lift stations – needed to pump wastewater through City system to the Lift Station at Doubletree Ranch Park, and across Lewisville Lake to the UTRWD for treatment.
The Wholesale component is nearly one half of the total Utility cost:
Current Year Budget 
 Operations $4,678,767   52%
 UTRWD $4,270,819
 Total $8,949,586

The Wholesale Charges consist of a demand charge and volume rate for both water and wastewater. These charges are in turn, passed on to residents with no markup as a base rate and volume charge. These are shown on the utility bills accordingly. The Wholesale Charge will remain the same. 

Revenue and Cost Picture >>

Example Statement