What makes up the cost of water on our bill?
Although not all water bills look exactly the same, most of the information is similar, and on some part of the bill there will be a breakdown in the cost that was incurred during the last billing cycle. There’s the water fee, the sewer, and the Regional Water Authority fee. The water fee and the Regional Water Authority fee are based on the amount of gallons used. The sewer can be based on the amount used, but it can also just be a flat monthly charge. So while all MUDs would like to be able to account for 100% of the water that they purchase or produce, and that they send to their customers’ meters, we know that’s not the case most of the time, or almost hardly ever.
In order for districts to recover the cost of the water purchased through the Regional Water Authority, the MUD will usually add a surcharge to our fee on each bill, which has typically seen an about a 10% increase.
What do we use our fee for?
We have several large scale projects that need to get funded over the next few years, to the tune of more than $1 billion. At the same time, we need to continue to pay for the everyday cost of operating the current system. There’s a price of water that we have to purchase from the City of Houston, as well as our own O and M costs and infrastructure that we already have in the ground. There’s annual fees that we have to pay to the Subsidence District for the wells that the MUD districts have just to keep those in permit, and then to pay to Subsidence District for the amount of water that they pump every year.