FREQUENTLY ASKED QUESTIONS

Utility Rate Study 

Frequently Asked Questions (F.A.Q's)

Is there something wrong with our current water and wastewater rates?

One of the goals of the rate study is to determine how accurately the current rates recover the costs to provide water and wastewater services to its customers.   

What we do know, is that future investments are needed to meet regulatory requirements to repair aging infrastructure, enhance system resiliency, and enable our systems to perform to the high level of service our customers expect.   

Our system is much like an older home starting to show foundation issues.   We need to invest in the system now before problems spread and start to damage other parts of the house.   

It is important to remember that portions of our current infrastructure are more than three decades old.

How is Fair Oaks Ranch working to keep costs down?

The City is working to design a structure that balances our desire for equity and cost recovery with minimal impacts to bills. 

Our system operates as an Enterprise Fund and is owned by you, the customer. We do not have shareholders or pay dividends. The investments we make in our water and wastewater systems today are designed to create a reliable, sustainable water and wastewater system for the future. 

What is an Enterprise Fund and what does that have to do with possible rate increases?

The utility is supported through charges for services paid by users of the system. An Enterprise Fund is a self-supporting fund that sells goods or services (in this case water and wastewater services) to the public (in this case utility customers) for a fee.  The fees should generate sufficient revenue to cover all the costs of providing that service, inclusive of daily operations, maintenance, repair, and replacements.  

The Enterprise Fund is separate from the City’s General Fund which means no property taxes are utilized to operate and maintain the utility. As the cost-of-service changes, rate changes are often needed to maintain the level of service that customers expect.

Will this rate change affect all residents?

No, the rate change will only affect Fair Oaks Ranch residential and commercial customers that have utility services with Fair Oaks Ranch Utilities. Utility services may include water service, wastewater service, or both. 

This rate change does NOT affect residents who are not using Fair Oaks Ranch Utilities. If your water - wastewater service is provided by SAWS or if you have a well and septic tank, this is not applicable to you.

Where can I get more information?

We will continue to provide information on our website, as well as, posting new information on our social media platforms as it becomes available.    

If you have any questions, please email Grant Watanabe P.E., Director of Public Works & Engineering Services.