Utility Billing and Convenience Fee Updates

Utility Rate and Credit Card Fee Billing Adjustments Q&A 

During the October 6 City Council Meeting, the Council approved updates to both utility billing and credit card processing policies, effective November 1, 2025.
Sewer and Water Rates:
Minor base adjustments will take effect for 1” and 1.5” water meters, as well as sewer base and volumetric rates. For the average residential customer, this represents about a $2.74 monthly impact, all related to sewer service. These updates help maintain reliable water and wastewater systems and fund ongoing infrastructure needs.
 
Credit Card Payments:
A 3% convenience fee will apply to all credit card payments to cover merchant processing costs. This ensures those who use credit cards cover the cost of that service, keeping more City funds directed toward essential operations. Cash, check, ACH and money order payments will not include a fee.


To learn more about utility and convenience fee adjustments, see our Frequently Asked Questions (FAQ) section below. 

Utility Billing and Convenience Fee Updates FAQ:


  • Why is the City adding a credit card convenience fee?
    • Each time someone pays with a credit card, the City is charged a processing fee by the credit card company. Since COVID, the City has covered those costs out of operating funds. The reinstated 3 percent convenience fee ensures that only those who choose to pay by credit card cover this expense, rather than all taxpayers or utility customers. Prior to COVID, the City charged the 3% convenience fee. 

 

  • Is the City making money from this fee?
    • No. The 3 percent fee goes toward covering the processing costs charged by credit card companies. The City does not profit from this change.

 

  • Can I avoid the credit card fee?
    • Yes. You can avoid the 3 percent convenience fee by paying with cash, check, ACH or money order. Those payment methods will not include any additional charges.

 

  • Why are water and sewer rates changing?
    • Rate adjustments are being made based on the results of a professional utility rate study completed by NewGen Strategies and Solutions. These updates help maintain stable operations, fund needed infrastructure projects, and ensure continued delivery of safe, reliable water and wastewater services.

 

  • What are the new water and sewer rates?
    • Water:
      • 1” meter base rates: $108.42 → $109.18
      • 1.5” meter base rates: $213.64 → $216.75
    • Sewer:
      • Base rate charge: $15.00 → $15.77
      • Volumetric rate: $8.02 → $8.43 per 1,000 gallons

 

  • How much will the sewer rate increase affect my bill?
    • For the average residential customer, the total monthly impact will be about $2.74, all related to sewer rates.

 

  • Why does the City need to raise sewer and water (for 1" and 1.5" meters only) rates at all?
    • The adjustments help the City keep up with rising costs of operations, meet financial standards for future infrastructure funding, and maintain reliable water and wastewater systems. The changes are based on a professional rate study and reviewed by City Council in public meetings.

 

  • Are the increase in sewer and water (for 1" and 1.5" meters only) funds being used for other City projects?
    • No. Water and sewer funds are separate from the City’s general fund and cannot be used for other purposes. Utility revenues are legally required to support water and wastewater operations only.

 

  • When do these changes take effect?
    • Credit Card Convenience Fee: November 1, 2025
    • Water and Sewer Rate Adjustments: November 1, 2025

 

  • Will the credit card convenience fee apply to all City departments?
    • Yes. The 3 percent convenience fee will apply to all credit card transactions made with the City, including utility payments, permits, fines, recreation, and other services.

 

  • What if I pay online through the City’s website?
    • The same 3 percent convenience fee will apply to online credit card payments. Customers can still avoid the fee by paying with cash, check, ACH or money order. In person PIN debit transactions will also not be subject to the 3 percent convenience fee. 

 

  • Why are only certain water meters affected by the water rate change?
    • The base rate adjustments apply only to larger meters (1” and 1.5”) because they reflect system capacity costs for higher water usage and larger service connections. Most residential customers have smaller meters that are not affected by this change.

 

  • How often does the City review water and sewer rates?
    • The City periodically reviews rates through independent utility rate studies to ensure they reflect the true cost of service and support the system’s long-term sustainability.

 

  • Did the City Council approve these changes?
    • Yes. Both the rate adjustments and the credit card convenience fee were presented and approved in open public meetings of the City Council on Monday, October 6, 2025. 

 

  • Do other cities have convenience fees?
    • Yes. Many cities across Texas have adopted similar credit card convenience fees and rate adjustments. This is a common practice to ensure costs are distributed fairly and that utility systems remain financially stable.


Rate Increases