Page 135 - CityofColleyvilleFY25AdoptedBudget

Water and Wastewater Service Charges Summary
The City’s water and wastewater revenue is generated from two primary sources: a monthly base charge for water and
wastewater service and a pass-through volumetric rate based on customer usage. The volumetric rate is a direct pass-
through at cost from the Trinity River Authority (TRA), which supplies the City with water and processes its wastewater.
Unlike some systems, Colleyville's volumetric rate does not include tiers; customers are charged based on actual usage, with
the rate determined by the cost TRA charges the City.

The majority of the revenue, over 80%, comes from these volumetric charges. The remaining 20% is derived from the
monthly base charge, which is used to fund the operations of the Water and Wastewater Fund—this is the only portion of
the revenue controlled by the City. The base rate is determined by the size of the customer’s meter, with the smallest meter,
used by the majority of customers, carrying the lowest charge. The City is committed to keeping this base rate as low as
possible while ensuring the continued delivery of essential water and wastewater services.

A24,207,703 $270,087
(1.13% vs. prior year)

Water and Wastewater Ser vice Charges Proposed and Historical Budget vs. Actual
$30M

$25M

$20M

$15M

$10M

$5M

$0
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025
Actual Budgeted

Water and wastewater service charges are a critical revenue source for the City of Colleyville, funding the maintenance and
operation of the City’s utility infrastructure. For Fiscal Year 2025, the revenue from these charges has been budgeted based
on the trends we have been observing in recent years.

The base rate is set according to the revenue needed to maintain and operate the water and wastewater systems effectively.
This ensures that the City can continue providing reliable utility services while covering the necessary costs of maintaining
the infrastructure. In addition to the base rate, the City imposes a pass-through charge for the volumetric side, which is
directly linked to the rates set by the Trinity River Authority (TRA) for water and wastewater services. This pass-through
charge allows the City to adjust the cost to customers based on the actual rates charged by TRA, ensuring that the City
neither gains nor loses revenue from uctuations in these costs.

By combining trend analysis with a carefully structured base rate and pass-through charges, the City ensures that water and
wastewater revenue estimates are both realistic and aligned with the operational needs of the utility system.

City of Colleyville | Budget Book 2025 Page 135