Questions and Answers From One Member

Customer Question:
I keep hearing that it's too expensive to fix the underlying issues, but I'd like to know the actual dollar figure that has been worked out to compare. How much would it realistically cost homeowners per month, in dollars, if KWSC were theoretically to make upgrades to provide us with reliably safe, clean water?

Response:
Upgrading the entire water system to create an ideal, fail-safe solution would require an investment of several million dollars. This would involve moving the water source closer to residential areas and ensuring it is not affected by variables such as flooding, lake turnover, droughts, evaporation, temperature fluctuations, or major infrastructure failures. A comprehensive upgrade would also include backup power systems like generators, additional water sources for times of scarcity, and expanded infrastructure to support future population growth.

While it's difficult to pinpoint an exact monthly cost per household without a full feasibility study, it's important to understand that delivering perfectly consistent, high-quality water in all conditions is extremely capital-intensive. The rates customers pay now reflect the current cost of maintaining the quality and quantity of water we are able to provide under existing infrastructure and regulatory requirements.

We continue to invest in system improvements and are actively working to enhance both quality and reliability. A portion of your monthly payments goes toward system depreciation, which helps fund future capital projects and necessary repairs. All upgrades are planned in compliance with TCEQ standards, and we remain committed to meeting and exceeding those requirements wherever possible.

Customer Question:
I tallied up our boil water notices for 2024, and came up with over 60 days worth of undrinkable water (to say nothing of the various low pressure, outages, brown sludge and bad smells). I paid for 12 months of service, but received under 10 months worth of potable water. How can homeowners be reimbursed for our costs when KWSC is unable to provide safe water? I had to buy and lug home water for myself and my animals.

Response:
We understand how frustrating and inconvenient boil water notices and water quality concerns can be, and we appreciate you sharing your experience.

Boil water notices are issued in accordance with TCEQ regulations whenever we are required to shut off or depressurize the water line for repairs or maintenance. These notices are precautionary and are designed to protect public health. Even with new infrastructure, boil water notices would still be necessary under certain conditions, as they are part of standard protocol across Texas water systems.

The water remains safe to use for non-consumption purposes during these notices, and we strictly follow all state guidelines to ensure water quality is restored promptly. Additionally, system flushing is required monthly and occasionally more frequently to maintain water quality throughout the distribution system. If you are experiencing specific issues such as discoloration or odor, we are happy to schedule a localized flush in your area.

For customers who need to flush their own lines due to water quality issues, reimbursement for the associated water use may be available. Please contact our office so we can guide you through that process and document your concerns.

We are committed to improving the system and minimizing disruptions wherever possible, and your feedback helps us continue working toward that goal.

Customer Question:
I asked for someone to come repair my faulty main shutoff valve months ago, but it sounded like that was never completed when I followed up. Is this completed now, or still on the to-do list?

Response:
Thank you for following up. The repair to your main shutoff valve has been completed. At the time of inspection, the valve was not leaking and was found to be functioning properly. If you're still experiencing any issues or have concerns, please don’t hesitate to let us know—we’re happy to take another look.

Customer Question:
A bad main shutoff valve can cost tens of thousands of dollars in property damage in the event of a leak or burst pipe. I feel let down that something so important would be such a low priority. Why did this take so long?

Response:
We understand your concern—having a functioning shutoff valve is critical for protecting your property in the event of a plumbing emergency.

To help prevent situations like this, KWSC policy requires that every customer have a private shutoff valve installed on the outside of their side of the meter box. This valve gives the homeowner full control to shut off water quickly if there’s a leak or burst pipe and serves as the primary emergency shutoff point.

While we are responsible for maintaining the utility-side valve inside the meter box and will inspect or repair it when needed, it's important to note that this valve is not intended to be the homeowner’s main point of control.

If your private shutoff valve is missing, inaccessible, or not working properly, we recommend having it inspected or installed by a licensed plumber as soon as possible. And of course, if you believe there’s a problem on our side of the meter, please let us know—we’re happy to check and address it promptly.

Customer Question:
Why are we charged a large flat fee, rather than only being charged a higher rate for water usage? It seems like it would be more fair if we were only charged based on the amount of water we used. That way, when we have brown sludge we can't use, we aren't paying quite as much. This would help offset the cost of having to go buy drinking water at the store. Additionally, people who irrigate 50 acres would pay more than people who just want to be able to shower.

Response:
Thank you for your thoughtful question regarding our billing structure.

The base fee is essential because it helps cover fixed costs required to maintain and operate the water system, including infrastructure upkeep, administrative expenses, and emergency services. These costs remain constant regardless of individual water usage. Water usage charges then cover the variable costs associated with the volume of water consumed.

We understand your concerns about paying full rates during times when water quality issues, such as discoloration or sediment, affect usability. However, it’s important to note that our rates are established in compliance with state regulations, which do not permit us to charge different rates based on temporary water quality conditions.

As you mentioned, charging solely based on usage would mean that customers who consume large volumes—such as those irrigating extensive acreage—would pay significantly more, while all customers benefit from the availability and reliability of the system infrastructure funded by the base fee.

For a clear breakdown of how your payments are allocated, please refer to the cost pie chart available on our website. It illustrates how both the base fee and usage charges contribute to the overall expenses involved in delivering safe and reliable water to all customers.

We appreciate your understanding and encourage you to reach out if you have any additional questions.

Customer Question:
I keep hearing that it's too expensive to properly fix the underlying issues, so we keep on putting bandaids instead. However, this is obviously not a long term strategy, since the existing infrastructure will continue to deteriorate. What is the actual long term plan to fix the issue? Is KWSC just trying to make it through this year, or is there a real 5 year or 10 year plan in place to implement new infrastructure? If so, what is that plan?

Response:
Thank you for raising this important question.

KWSC has developed a comprehensive long-range plan extending out to ten years, focused on systematically upgrading and replacing aging infrastructure. We recognize that continual temporary repairs are not a sustainable solution, and our goal is to transition to a more reliable and modern system over time.

That said, replacing infrastructure comes with significant challenges—both in complexity and cost. For example, installing just one mile of 12-inch pipeline without any connections can exceed one million dollars. Due to these high costs, infrastructure replacement must be carefully planned and prioritized to balance immediate needs with long-term goals.

Our strategy involves phased capital projects that target the most critical areas first, while maintaining day-to-day system reliability. Funding for these projects comes from depreciation reserves and other capital sources, ensuring that improvements are made responsibly and sustainably.

We remain committed to transparency throughout this process and welcome any questions or input from our customers as we work toward these long-term improvements.

Customer Question:
The key factors provided for the rate increase don’t seem to add up to the total increase I’m seeing. For example, utilities increased by 2.6%, insurance by 12.7%, payments to CTWS by 2%, and reserve fees by about 6.95%. But when I calculate these, it only comes to around a 1.56% increase overall, while the actual increase feels closer to 7% or more. Can we get a detailed breakdown of where the expected income is being spent, such as amounts allocated to new vehicles, raises, and other expenses?

Refined Response:
Thank you for your thorough review and for raising these important questions.

The overall budget increase for KWSC is approximately 4.58%, as shown in our official table. The “key factors” you mentioned—such as increases in utilities, insurance, payments to CTWS, and reserve fees—represent only a portion of the total increase.

The remaining increase comes from several other components, including:

• Pass-through fees such as franchise tax, regulatory fees, and volunteer fire department fees, which are necessary expenses outside of operational control.
• Payroll expenses, which include adding one additional staff member to support our growing service demands.
• Depreciation funds, which are allocated to the capital improvement fund. This fund supports our Long-Range Plan and is critical for financing essential projects such as TCEQ compliance work, pipeline replacements, and storage tank repairs.

Regarding specific expenses like new vehicles or raises, those are included within the broader categories of capital expenditures and payroll, respectively, and are budgeted to maintain efficient and reliable service.

We understand the importance of transparency and encourage you to refer to our detailed budget documents, which provide further insights into the allocation of funds. If you would like, we can provide a more detailed breakdown or schedule a meeting to discuss these items further.

Customer Question:
Is KWSC a for-profit organization?

Response:

No, KWSC is not a for-profit organization. We operate as a non-profit, and all funds collected are used solely to maintain and improve the water system for our customers.

Customer Question:
Is there a town hall or other meeting place where members can air their concerns in person? I feel that the announcements and news have been deliberately vague and misleading, and would like to get clear answers.

Response:
Thank you for your interest in staying informed and engaged with KWSC.

Members are always welcome to attend our Board meetings, which provide an opportunity to hear updates, ask questions, and share concerns directly with leadership. Meeting schedules, agendas, and minutes are posted on our website to ensure transparency and accessibility.

In addition to Board meetings, members can schedule one-on-one meetings with committees or the General Manager to discuss specific concerns in more detail.

Financial reports, recent news, and project updates are also regularly available on our website for members to review at their convenience.

We encourage all members to participate actively and reach out if they need further clarification or assistance.