Water Rates Explained

Your water rate reflects the cost of collecting, transporting, purifying, storing, testing and delivering safe water from the lake to your tap.

Why do rates go up?

Allen’s water and wastewater services are purchased from the North Texas Municipal Water District (NTMWD).  Each year, the City of Allen and NTMWD perform cost projections and rate studies to determine the cost of meeting our customer’s water needs. Rates may rise due to:

  • Population growth requiring new water sources, storage tanks or delivery lines
  • Aging infrastructure in need of repair or replacement
  • New regulations to safeguard public health

Approximately 64% of Allen’s Water Sewer Fund budget is paid to the NTMWD to pay for water and wastewater treatment. The remaining 36% of the budget it what it takes to deliver water to each home and business, as well as transport the sewage the to NTMWD.

What do rates cover?

  • Raw water collection, transport and treatment
  • Maintenance of tanks, towers, pumps, pipes and other equipment
  • Testing equipment to guarantee water quality
  • Building projects to replace aging infrastructure or meet the need of a growing population

Recent and upcoming projects

  • 2020: Repainted the Bethany Road elevated water tank- $1 million
  • 2020: Completing Multiyear Hillside Subdivision Water and Sewer Line Replacements- $8.8 million
  • 2021-22: Completing Design for Windridge Subdivision Water and Sewer Line Replacements- $11.6 million
  • 2020-21: Design and Build Sloan Creek Gravity Sewer Line and New Sewer Lift Station - $13 million

What is Allen doing to control rising rates?

Even with incremental rate increases, most Allen customers continue to pay a lower rate than neighbors in every NTMWD member city, including Frisco, McKinney, Plano and Richardson. Allen’s rate is also significantly lower than the state average, thanks to efforts by Allen City Council and NTMWD, including:

  • 2017: Allen City Council saved customers $15.75 million over the next ten years by raising infrastructure impact fees for new developments and changing the way infrastructure projects were financed.
  • 2018: NTMWD made budgeting changes resulting in lower wholesale water rates than anticipated.
  • 2019: Allen City Council voted to eliminate the highest tier of water rates, which charged residential customers a higher fee when use surpassed 75,001 gallons per month.
  • 2020: Conducting a rate study update to ensure rates increase the smallest increment possible

To learn more about NTMWD and the rising cost of water/wastewater services, visit NTMWD.com.