Pflugerville residents may pay higher water rates next year, city staff says

Pflugerville city staff on Tuesday gave a presentation to the City Council outlining utility fund projections for the next fiscal year, giving a glimpse into what resident’s monthly bills may look like in 2026.

The city’s utility fund includes individual funds for water and wastewater, solid waste, utility capital projects and debt service. Finance Director Tracy Waldron gave the presentation, which focused on a proposed increase in water and wastewater fees. According to the presentation, the average resident’s water bill could increase to $211.85 per month, up from the current $192.75 per month.

According to the presentation, the trash and recycling rate of $22.37 per month is not projected to increase in the next fiscal year.

Waldron included a chart that showed Pflugerville’s proposed water rates as being some of the highest amongst other northern Austin suburbs. However, she said, Pflugerville is still building its new wastewater plant, the Wilbarger Creek Regional Wastewater Treatment Facility, which factors into the rate increases.

“We’re building our plants right now,” Waldron said. “We’re at a very different place than Cedar Park, which is built out or close to built out.”

According to the presentation, a resident with the typical five-eighths-of-an-inch water meter could see their base fee increase from $45 to $50 per month. Volume fees, based on how much water is used that month, are projected to stay around the same cost or decrease compared to 2025.

The wastewater base charge is projected to increase from $55 to $65 per month. The volume charge, calculated per 1,000 gallons, could increase from $6.10 to $6.50 per month.

Waldron’s presentation also included a proposed $63.3 million expenditure budget for the 2026 fiscal year, an increase from the 2025 budget of $56.1 million. She said the increase is mainly a result of hiring 14 people for the wastewater facility and a large increase in annual debt payments over the next five years.

Waldron said the city’s current annual debt payment is $22 million, but it is projected to double in 2027 and triple in 2029.

Several council members expressed worry about the increase in rates. Council Member Melody Ryan asked if the fund balance, which she said is in a surplus, could be used to keep from increasing rates. Waldron said it could not because the city must bring in a certain amount of revenue to repay its debts. The amount the city must have in the fund to cover its debts is based only on revenue, not the current fund balance.

Waldron said if rates don’t increase, the city would not bring in enough revenue to maintain the debt coverage amount the city has to reserve. She said increasing rates now will also allow the city to keep up with ballooning annual debt payments.

“Getting (different) loans are great and we do see savings in doing those types of loans,” Waldron said. “They also come with a lot of requirements. One of those requirements is a pretty high debt coverage that we have to (prove) and maintain.”

Waldron said having the cash from the increase in revenue available in the fund also keeps the city from having to issue more debt, lowering annual debt payments in the long run.

“If we have the cash we will use the cash and not sell the debt,” Waldron said. “Which means our total debt payments would be estimated lower.”