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Water and Wastewater Ser vice Charges

The City ’s water and wastewater revenue is generated from two primary sources: a monthly base charge for water and
wastewater ser vice 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 por tion 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 ser vices.

Water and wastewater ser vice 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 2026 , the revenue from these charges has been budgeted based
on the trends we have been obser ving 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 ser vices 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 ser vices. 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.

Water and Wastewater Ser vice Charges Revenues by Fund
$30M
$ 2 7 M
M
7
2
$
$27M
$25M
$ 2 5 M

5
M
$
2
$
$ 2 3 M
$23M
M
3
2
$ 2 3 M
$

$23M
M
3
2
$19M
9
$

$ 1 1 9 M
M
$20M
6
$16M
$ 1 1 6 M

$
M
$10M
0
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026
Utility Fund
Revenues by Fund
FY 2025
Adopted
FY 2025 FY 2026
FY 2024 FY 2025 Budget vs. FY
Category Adopted Proposed
Actuals Projected 2026 Proposed
Budget Budget
Budget (%
Change)
Utility Fund
Water Revenue -Base Rate $2,277,212 $2,373,871 $2,392,687 $2,509,730 5.72%
FY 2025-2026 Annual Budget | Colleyville Page 92