Notice to raise water rates, effective 9/1/26

The Lilly Grove Special Utility District board of directors has determined that the base water rate at this time is inadequate to cover all operation and maintenance costs for water production and distribution. A base rate increase from $35.00 to $38.00 was adopted on 6/29/2026 and will become effective 9/1/2026. There will be no change to the tier water rate pricing that was adopted in 2023. If you have any questions please contact the office at 1-936-569-9292 or by email at lgwater@gmail.com.

Water rate increases are often necessary to cover the costs of maintaining and upgrading aging infrastructure, complying with new regulations, and ensuring long term sustainability of water systems.

Monthly Base Rate: $38.00
Water included w/Minimum Bill: NONE
Tier (gal.): $ per 1,000 gal.:
0-6,000 $5.15
6,001-10,000 $6.00
10,001-20,000 $7.00
20,001-40,000 $8.00
40,001+ $9.00

New bill Example- customer used 5,000 gallons of water- the bill will be
$38.00 base rate + $25.75 for water used =$63.75 total plus tax

Old bill Example- customer used 5,000 gallons of water- the bill will be
$35.00 base rate + $25.75 water used = $60.75 total plus tax

Why did the LGSUD board of directors vote to increase the base water rate charge? A combination of these things.....

-Ensuring Financial Sustainability: Water utilities need to generate enough revenue to cover all their costs, including debt repayment, and ensure their long-term financial stability.
-Inflation: Rising costs of materials, labor, and energy also contribute to higher operating costs for water utilities.
-Infrastructure Costs: Water and wastewater systems, including pipes, treatment facilities, and storage tanks, are expensive to maintain and often require upgrades or replacements as they age.
-Funding Infrastructure Improvements: Rate increases can help fund projects like upgrading aging water mains, installing new meters, and building new treatment plants.