Billing FAQs
Why is my bill so high?
Utility Bills are based on usage and the cost to treat, deliver water, maintain the infrastructure, and meet state and federal regulations. Since the system is self-funded, rates reflect the actual cost of service.
Why doesn’t the City use tax money to lower bills?
In Texas, utilities operate separately from tax-funded services such as fire and police. Your bill pays for the system you use, ensuring fairness and long-term reliability.
Where does my money go?
Your payment supports the water system exclusively. It supports the water treatment and delivery of safe drinking water to your home or business, pipe repairs, daily operations, and long-term improvements. These funds stay within the utility system.
Is the City making a profit from utilities?
No. Utilities are designed and mandated by Texas law to cover costs, maintain service reliability, and plan for future needs, not generate profit.
Why do rates increase?
Rates may increase due to aging infrastructure, rising costs or inflation, regulatory requirements from state and federal agencies, and system growth.
Can my bill be waived or reduced?
Charges are based on usage and service costs. We can, however, review your account for errors, discuss available options or programs, and provide guidance.
Why am I paying this if I already pay taxes?
Property and sales taxes fund services like police and fire. Utilities are funded separately by customers based on usage and actual service costs.
Is this required by law?
Yes. Municipal (City) Utilities operate under state laws, such as the Texas Local Government Code and the Texas Water Code, that support self-funding.
Don’t you collect a tax from hotels called the Hotel Occupancy Tax or HOT tax? Why can’t this pay for our utility bills?
No. These funds are legally restricted under Texas Tax Code Chapter 351 and can only be used for Tourism Promotion, Convention and Visitor Related activities, and Arts, historic preservation, and similar uses. It cannot be used for water, sewer, or utility operations.
I heard about the Half Cent Sales Tax Fund. Can’t that be used for our utility bills?
No. Half Cent Sales Tax revenue is used to fund economic development projects. Under the Texas Development Corporation Act. These funds are restricted to economic development purposes. In limited cases, they may fund infrastructure tied to a specific project, but they may not be used to fund a utility's daily operations or to reduce customers’ bills.