In July 2024, Communities Unlimited conducted a water rate study that showed the city of Devine was in the deficit of almost $1.1 million dollars in its water and wastewater system. The city council was informed that the city had not realized a rate increase for almost eight years. As a result, the revenue generated over the past eight years from regular water and sewer usage was insufficient to cover the city debts.
The council was also advised that it was necessary to implement a considerable rate increase to pay for the city’s current and future debt obligations and maintenance and operations.
The two options recommended by Communities Unlimited for the water and sewer system increases were the following:
Water usage: Increase the usage charge for all usage over minimum base charge by 48.2%. Increase all minimum charges by 48.2%
Sewer Usage: Increase the discharge for all usage over minimum base charge by 91.4%.
Increase all minimum charges by 91.4%
It was also recommended that after this rate adjustment, the city continue to increase water rates by a minimum 2% to 5% each year to maintain pace with inflation and future costs.
The city council decided to adopt these recommendations, by implementing the increases into two phases without an additional 2 to 5 % increase. The first phase was in February 2025, and the second phase will be in October 2025.
In September 2025, an analysis of phase 1 of the water rate increase was conducted by the Devine city administration and our bond counsel, SAAMCO Financial Services. The purpose was to identify how much revenue was captured by the first-rate increase. It was determined the city generated approximately $620,000 in revenue.
As anticipated the city has not met its necessary obligation of $1.1 million, therefore we have determined it will be necessary to implement the second phase during the October billing cycle.
We anticipate this second increase should raise the similar amount of revenue and dramatically decrease the city’s deficit.
Community Impact: While the adjustments may pose short-term challenges, they are crucial for the city’s long-term sustainability and service quality
