Understanding the Recent Rate Increase and Infrastructure Projects at Caney Creek MUD

We understand the recent rate increase may impact on our customers’ bills, and we are committed to providing transparent updates on the progress of planned future infrastructure projects.

By investing in infrastructure repairs now, we are trying to avoid more costly disruptions in the future.

The new rate increase is necessary to fund critical infrastructure repairs and upgrades to our water and wastewater facilities. It will also contribute to clean, safe drinking water for all the community.

The operational costs of aging infrastructure, maintenance and operations, compliance with regulations, and future planning and growth are the necessities of our District.

Caney Creek MUD must set rates annually to produce net revenues of at least 1.10 times the annual debt service.

The Granular Activated Carbon (GAC) Adsorption system will cost approximately $1,000,000 to install and requires annual maintenance of approximately $40,000-$45,000 to properly maintain. This system is the preferred method for removing the TTHMs at the Hall Road Water Plant.

In the last couple of years, labor, chemicals, materials, and energy costs have increased, requiring adjustments to rates to cover ongoing operations.

We are at full capacity with our water, and there is no room for growth in the Sargent Area. We will need an elevated storage tank in the near future (assuming a 500,000-gallon tank), and the estimated cost is 3.25 million.