The City’s utility rates for water, wastewater and sanitation will change beginning July 1, 2026, based on a recent rate study by NewGen Strategies & Solutions. This series is designed to help residents understand the systems behind the monthly bill — what they cost to operate, why those costs are rising and how rate adjustments ensure each utility remains reliable, compliant and financially stable.
Residents see a monthly utility bill; behind it is a system of treatment plants, equipment, chemicals, trucks, regulatory requirements and infrastructure that must operate every day without interruption. Because the City’s utilities operate at cost — with no profit margin — every dollar collected is tied directly to a real-world expense. Understanding those expenses helps explain why rate adjustments are sometimes necessary to keep the system reliable.
The Cost of Producing Clean Water
Treating drinking water is one of the City’s most resource intensive operations. For FY2026–27, the total cost to operate the water system is budgeted at $15.9 million. That includes the chemicals used in the treatment process, the electricity required to pump and move water throughout the system, the maintenance of aging infrastructure and the equipment needed to meet state and federal water quality standards.
Chemical costs alone have risen sharply nationwide, and the materials used in treatment and distribution have followed the same trend.
At the same time, overall water consumption has decreased. While conservation is beneficial, it also means fixed costs — staffing, plant operations, equipment maintenance — are spread across fewer gallons. This creates a structural gap between what it costs to produce water and the revenue generated from usage.
Regulatory compliance adds another layer. State and federal standards require continuous testing, monitoring and reporting to ensure water remains safe and reliable. These requirements are essential, but they also contribute to the overall cost of service.
Where Your Water Dollar Goes
- Treatment chemicals and filtration
- Electricity for pumping and plant operations
- Maintenance of pipes, valves and meters
- Regulatory testing and reporting
- Capital projects and long‑term infrastructure
The Cost of Treating Wastewater
Wastewater treatment is largely invisible to residents, but it is one of the most complex and capital intensive systems the City operates. For FY2026–27, the wastewater system is budgeted at $9.8 million. The wastewater plant must meet strict Oklahoma Department of Environmental Quality (ODEQ) standards, and upcoming mandated upgrades will require significant investment over the next several years.
Operating the system involves energy intensive aeration equipment, pumps, laboratory testing, biosolids handling and continuous monitoring. These systems run around the clock, regardless of fluctuations in usage. The City’s winter averaging method helps ensure residents are billed fairly, but it does not change the underlying cost of maintaining the system.
Why Wastewater Upgrades Are Required
ODEQ mandates are based on water quality, environmental protection and system capacity. Upgrades typically address:
- Treatment technology improvements
- Stricter discharge standards
- Aging equipment replacement
- Capacity needs tied to growth or regulatory changes
The Cost of Collecting and Disposing of Solid Waste
Sanitation services depend on equipment and labor that have become significantly more expensive. For FY2026–27, the sanitation system is budgeted at $7.24 million. Garbage trucks — the backbone of the system — have increased in cost by 30 to 40 percent due to rising prices for steel, electronics and specialized components. Fuel, landfill fees and replacement carts have also risen.
Despite these pressures, the City continues to provide regular collection schedules and maintains service levels without reducing routes or frequency. The adopted rate adjustments help ensure the sanitation system can keep pace with rising operational and landfill costs while maintaining the reliability residents expect.
What Drives Sanitation Costs
- Garbage truck replacement and maintenance
- Landfill fees
- Fuel and fleet operations
- Cart replacement and repairs
- Labor and safety requirements
Why This Matters
The City’s utilities are designed to be self‑supporting. When the cost of chemicals, equipment, labor or regulatory compliance increases, rates must eventually adjust to match those expenses. The recent rate study by NewGen Strategies & Solutions provides a data‑driven assessment of what it takes to keep each system financially stable while continuing to deliver safe, reliable service.
Together, water, wastewater and sanitation represent more than $33 million in annual operating and capital needs — all funded through the monthly water bill. This cost breakdown helps residents see the connection between the systems they rely on every day and the financial structure required to sustain them.
For further information, read this overview of the new utility rates, view the new water/wastewater fee schedule, view the new fee sanitation fee schedule, view NewGen’s PowerPoint presentation on the new rates or watch the recorded June 1 Council meeting.