HILLSBORO, Texas — Water and wastewater bills could soon increase for Hillsboro residents as city leaders work to address growing operational costs and aging infrastructure needs.
During a recent City Council meeting, City Manager Megan Henderson outlined proposed utility rate adjustments, saying the city has been operating its water system at a loss for several years. Officials say the current rates do not fully cover the cost of providing water and wastewater services.
Another Rate Increase Under Consideration
If approved, water rates could rise by 12% to 15% beginning with the city’s next fiscal year.
According to city officials, the proposed increase is necessary because Hillsboro continues to pay more for the water it purchases from its supplier. Rising expenses have reduced the financial benefit of previous rate increases approved in recent years.
For the average residential customer using about 2,000 gallons of water per month, a 12% increase would add approximately $10.50 to the monthly combined utility bill, which includes water, sewer, and trash services.
Part of the additional revenue would also help fund utility infrastructure relocation tied to a major roadway improvement project near the courthouse square. Water and sewer lines located beneath Waco and Elm Streets must be moved before road construction can proceed.
Wastewater Charges May Change Too
City leaders are also proposing adjustments to wastewater rates for the first time in several years.
Officials say maintenance and operating costs have steadily increased while revenue has declined as more residents reduce water consumption. Because wastewater charges are partially tied to water usage, conservation efforts have resulted in lower collections.
Under the proposal:
- Residential wastewater rates would increase by about 10%
- Commercial wastewater rates would increase by about 30%
- The monthly wastewater base charge would decrease from $17.33 to $13
- Residential usage charges would increase from $2.69 to $3 per 1,000 gallons
- Commercial usage charges would increase to $3.50 per 1,000 gallons
For a typical household using 2,000 gallons of water each month, the wastewater adjustment would add roughly $1.67 to the monthly bill.
Residents Voice Concerns
Some residents questioned whether raising rates is the best solution.
During the council meeting, community members expressed concerns about affordability and suggested the city review spending priorities before asking customers to pay more.
City officials acknowledged those concerns but said the proposed increases represent what they believe is the minimum adjustment necessary to keep the utility system financially stable.
Grant Funding Could Help Future Projects
Hillsboro is also pursuing outside funding to reduce the burden on local ratepayers.
The city currently has a $7 million grant application pending with the Texas Water Development Board. If awarded, the funding would support water line replacement projects that city leaders say are urgently needed.
However, officials noted that previous grant applications have not been successful despite multiple attempts over the last several years.
What Happens Next?
The proposal received its first review during Tuesday’s council meeting, but no final action has been taken.
City leaders are expected to continue discussing the rate adjustments in the coming months, with a final decision anticipated before the start of the new fiscal year in October.
Residents who receive water and wastewater services from the city could see the changes reflected in their utility bills later this year if the proposal is approved.
Important Notice
Utility rate proposals remain under review and are subject to approval by the Hillsboro City Council. Final rates and implementation dates may change before adoption.
Conclusion
Hillsboro officials say increasing utility costs, infrastructure demands, and declining revenue have left the city with limited options. While some residents oppose higher bills, city leaders argue the proposed adjustments are necessary to maintain essential water and wastewater services. The final decision is expected before October.
