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Home My WebLink About26-28720 - City Council - OrdinanceORDINANCE 26-28720 AN ORDINANCE AMENDING THE CODE OF THE CITY OF FORT WORTH, AS AMENDED, CHAPTER 35 "WATER AND SEWERS", ARTICLE III "CHARGES", SECTION 35-56, "WATER AND SEWER RATES WITHIN THE CITY" BY AMENDING SUBSECTIONS (g), (h) and (i) REVISING WHOLESALE AND RAW WATER RATES FOR WATER AND WASTEWATER; PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That Section 35-56(g), Article III "Charges" of Chapter 35 "Water and Sewers" of the Code of the City of Fort Worth, as amended, is hereby further amended to be as follows: (g) The following schedule of rates per month, or fraction thereof, shall be the charges to all wholesale customers for furnishing water to such customers: RATES FOR WHOLESALE WATER SERVICE Volume ($/1,000 gallons)* Maximum Day ($/MGD excess) Maximum Hour ($/MGD excess) Customer ($/Meter/Month) *plus raw water cost RAW WATER SERVICE $1.0621 $159,498.00 $49,606.00 $25.00 All uses inside and outside the Tarrant Regional Water District shall be $1.6439 per 1,000 gallons per month. SECTION 2. That Section 35-56(h), Article III "Charges" of Chapter 35 "Water and Sewers" of the Code of the City of Fort Worth, as amended, is hereby further amended to be as follows: (h) The following schedule of rates per month, or fraction thereof, shall be the charges to all wholesale customers for furnishing wastewater services to such customers: RATES FOR WHOLESALE WASTEWATER SERVICE Volume ($/1,000 gallons) $2.1961 Ordinance No. 26-28720 Page 1 of 2 BOD ($/pound) TSS ($/pound) Customer ($/month) SECTION 3. $0.6207 $0.4023 $75.00 That Section 35-56(i), Article III "Charges" of Chapter 35 "Water and Sewers" of the Code of the City of Fort Worth, as amended, is hereby further amended to be as follows: (i) The standby charge per month, per 1,000 gallons, is $0.9416 SECTION 4. This ordinance shall be cumulative of all provisions of ordinances and of the Code of the City of Fort Worth, Texas (2015), as amended, except where the provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code, in which event conflicting provisions of such ordinances and such Code are hereby repealed. SECTION 5. It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 6. This ordinance shall be in full force and effect following its adoption. APPROVED AS TO FORM AND LEGALITY: By: Stephen ines (Sep 2'E0 6 16:00:26 CDT) Stephen Hines Sr. Assistant City Attorney ADOPTED: August 25. 2026 EFFECTIVE: August 25, 2026 Jannette S. Goodall, City Secretary as FORT , 7 X0000000000 O 00� 0 0 0 pOOO r1O d Ordinance No. 26-28720 Page 2 of 2 FORT WORTH„ MAYOR AND COUNCIL COMMUNICATION 7.1.14 ORDINANCE ADOPTING FY 2027 WATER AND WASTEWATER WHOLESALE RATES DATE: 08/25/26 M&C FILE NUMBER: M&C 26-0837 DEPARTMENT: WATER SUBJECT (ALL) Adopt Ordinance Revising Wholesale Water, Wastewater, Standby and Raw Water Service Rates and Amend Chapter 35 - Water and Sewers, Article III - Charges, Division 1 - Generally, Sections 35-56(g) (h) and (i) of the City Code with an Effective Date of Billing on or After November 1, 2026 for Usage and Flows from and After October 1, 2026 for Water and Wastewater Service RECOMMENDATION It is recommended that the City Council adopt the attached ordinance revising wholesale water, wastewater, standby and raw water service rates and amend Chapter 35 - Water and Sewers, Article III - Charges, Division 1 - Generally, Sections 35-56(g) (h) and (i) of the City Code, with an effective date of billing on or after November 1, 2026, for usage and flows from and after October 1, 2026 for water and wastewater service. DISCUSSION Each year, wholesale water and wastewater rate studies are prepared in accordance with the terms of the uniform wholesale customer contracts. For Fiscal Year (FY) 2027, the wholesale water cost of service and rate study was performed by a consultant, and the wholesale wastewater cost of service and rate study was performed by water utility staff, per the uniform contract requirements. The results of these studies indicate the need for an increase of 13.49 percent in wholesale water revenue requirements and an increase of 16.76 percent in wholesale wastewater revenue requirements. The rates as proposed in the tables below will recover the cost of providing wholesale water and wastewater service. The rate setting methodology set forth in the uniform contract requires that the most recently completed fiscal year's data (the test year) serve as the basis for establishing costs and the volumes used in calculating the future rates. The test year for FY2027 is FY2025. Costs are adjusted to include known and measurable changes impacting the rate period. Unlike retail rates, which are based on projected volumes, wholesale rates are calculated using the test 1 of 3 FORT WORTH. year's actual volumes. This can cause rates to go up in a year with low volumes or down when the test year has high volumes. A joint meeting of the Wholesale Water Advisory Committee and the Wholesale Wastewater Advisory Committee was held on June 11, 2026, to present the studies and the rates. WHOLESALE WATER RATES Current Proposed Volume ($ per 1,000 gallons) $0.9278 $1.0621 Maximum Day ($ per Millions of Gallons per Day excess) $123,326.00 $159,498.00 Maximum Hour ($ per Millions of Gallons per Day excess) $21,546.00 $49,606.00 Monthly Customer Charge per $25.00 $25.00 meter STANDBY CHARGE The City also enters into wholesale water contracts with standby customers who do not use water on a regular basis. These customers are assessed a minimum charge equal to the three-year numerical average of the treatment, pumping and transmission charge per 1,000 gallons. The charge for FY2027-FY2029 shall be $0.9416 per 1,000 gallons per month. RAW WATER RATES The cost of untreated water supplied by the Tarrant Regional Water District is $1.5082 per 1,000 gallons. Adjusted for street rental and system loss, the raw water charge to customers is $1.6439 as a direct "pass through" cost to wholesale water customers. WHOLESALE WASTEWATER RATES 2 of 3 FORT WORTH. Current Proposed Volume ($ per 1000 gallons) $1.7770 $2.1961 BOD (per pound) $0.5851 $0.6207 TSS (per pound) $0.3440 $0.4023 Monthly Customer Change $75.00 $75.00 This M&C does not request approval of a contract with a business entity. FISCAL IN FORMATION/CERTIFICATION The Director of Finance certifies that upon approval of the above recommendation and adoption of the attached ordinance, funds will be deposited into the Water and Sewer Fund. The Water Department (and Financial Management Services) is responsible for the collection and deposit of funds due to the City. SUBMITTED FOR CITY MANAGER'S OFFICE BY: Jesica L. McEachern, # 5804 ORIGINATING BUSINESS UNIT HEAD: Chris Harder, # 5020 ADDITIONAL INFORMATION CONTACT: Brian Brown, # 8820 ATTACHMENTS 1. Ordinance Adopting Wholesale Water Wastewater Rates [7.1.14.1 - 3 pages] 3 of 3