Notice to Residents of Montgomery County MUD No. 88 Regarding Revised Water and Sewer Rates

To our valued residents,

Please be advised that Montgomery County Municipal Utility District No. 88 (“MCMUD No. 88”) has revised its Rate Order to adjust the Residential Water tier structure and Commercial Water and Sewer tier structure, effective December 1, 2025.

As you may be aware, the District and its partner Districts, MCMUD No. 89 and Spring Creek UD (“SCUD”), have been in Drought Stage since Fall 2023 due to concerns with the water levels in the aquifers which provide groundwater to the joint system. The joint districts have agreed to revise their rate tiers to become uniform and to disincentivize high water usage. MCMUD No. 88 wants to emphasize that these revisions are being implemented to promote water conservation by decreasing the average bill for lower water users and increasing the bills for higher water users. The revised rate tiers are designed to maintain the same overall revenue for the District, so this is not a rate increase. The District has not modified the Residential Water Rates since the creation of the MUD, excluding the SJRA Water Pumpage Fee which is not controlled by the MUD. The changes are summarized in the tables below:

Please note, based on the historical water usage data used for this rate adjustment, approximately 39% of the residential customers used less than 6,000 gallons per month. These 39% of residents would see a slight decrease in their total water bills on normal conditions/Drought Stage No. 1. Contrarily, about 4% of residents used more than 15,000 gallons per month so these customers would see the largest increase in their bills under the revised rate structure in normal conditions/Drought Stage No. 1.

Below are the average bills for various usages under the current base rates during Normal Conditions or Drought Stage No. 1:

The District also approved an increased multiplier on all rates above the 3,000 gallon minimum for Drought Stages 2, 3 and 4. Previously, the multipliers for all water consumption above the minimum usage (previously 7,000 gallons, now 3,000 gallons per month) were 2x for Stage 2, 3x for Stage 3, and 5x for Stage 4. The revised multipliers are 3x for Stage 2, 4x for Stage 3, and 5x for Stage 4. These revisions, in conjunction with the revised rate order, are implemented to promote water conservation due to the concerns with our water aquifers.  Under Drought Stage 2 Conditions, the bills would be as follows with the revised rate structure. Please note, the District is currently under Drought Stage No. 1.

Our goal with these changes is to promote responsible water usage and ensure fairness across all consumption levels, while continuing to provide reliable water and sewer services to our community.

If you have any questions, please do not hesitate to contact us via the District’s website at https://www.mcmud88.org/.

Sincerely,

Montgomery County MUD No. 88