ORDINANCE NO. 1194 AN ORDINANCE OF THE CITY COUNCILOF THE CITY OF GRAHAM, TEXAS ("CITY') AMENDING CHAPTER 25 - WATER AND SEWERS', SECTION 25-13 - WATER SERVICE CHARGES - GENERALLY, AND SECTION 25-16 - 'SEWER SERVICE CHARGES', OF THE CODE OF ORDINANCES (AS AMENDED), TO PROVIDE, RESPECTIVELY, FOR: (A) ANI INCREASETO CHARGES FOR WATER SERVICEAND (B) AN INCREASE TO CHARGES FOR SEWER SERVICE; PROVIDING FOR CUMULATIVE PROVISIONS; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY CLAUSE; PROVIDING FOR PUBLICATION BY CAPTION; AND PROVIDING A PROVISIONAL EFFECTIVE DATE OF OCTOBER 15, 2025. WHEREAS, the City of Graham owns andoperates a Water Supply System and a Wastewater (also known as Sewer') Transmission and Treatment System (hereinafter the "Systems'); and WHEREAS, the Systems are operated as municipal utilities by the City and are financially structured to capture full cost-recovery ofall expenses related to the operation, maintenance, and recapitalization ofthe Systems; and WHEREAS, a formal 'rate study analysis' (hereinafter 'analysis') was conducted during 2024, by a qualified consultant, at the behest of the City Council; and WHEREAS, the analysis determined that charges for water and sewer service were not sufficient to meet the financial burden for full cost-recovery of operation, maintenance, and recapitalization ofthe Systems; and WHEREAS, the City desires to set the water and sewer rates indicated in the analysis for Fiscal Year 2025-2026; and WHEREAS, the City is required to set fees and charges for the Systems by ordinance; and WHEREAS, in the furtherance of setting water and sewer rates indicated in the analysis, the City desires to amend Chapter 25 'Water and Sewers' of the Code of Ordinances, as amended, in the following manner: Section 25-13 - 'Water service charges Generally' shall be amended to increase the 'Base Charges for Water' per month, and increase the Volumetric Water Charges' per 1,000 gallons of water usage per 1,000 gallons/per month, by a factor ofs seven perçent; and Section 25-16 - 'Sewer service charges' shall be amended to increase the 'Class 1' and 'Class 2' charges for sewer service per month by a factor of seven percent; and WHEREAS, the City finds it is in the public interest to amend the aforesaid Sections ofthe Code of Ordinances, as amended, to provide for sufficient revenue to capture full cost-recovery ofall expenses related to the operation, maintenance, and recapitalization of the Systems; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAHAM, TEXAS: SECTION 1 - FINDINGS OF FACT That the facts and matters set forth herein are hereby found to be true and correct and further, that the recitals contained in the preamble are true and correct and form a material part ofthis Ordinance. SECTION 2 AMENDMENT a. That Chapter 25 'Water and Sewers', Section 25-13-'Water service charges-generally' of the Code of Ordinances (as amended) shall be amended as follows: i. Table 'B' and' Table 'C' at subparagraph b(c)(2) shall be amended to reflect the following Base Meter Charges (per month): Table B Page 1 of 4 Residential and Commercial Customers Inside the City Limits Meter Size Base Meter Charges (per month) 3/4 inch or 5/8 inch $30.32 1 inch $42.46 1 1/2 inch $54.58 2i inch $87.94 3i inch $256.23 4 inch $424.53 5i inch $530.67 6i inch $636.80 Larger than 6 inch, or for a water supply system Negotiated Rate Table C Residential and Commercial Customers Outside the City Limits Meter Size Base Meter Charges (per month) 3/4 inch or 5/8 inch $37.91 1 inch $53.07 1 1/2 inch $68.22 2i inch $109.93 3i inch $320.29 4i inch $530.67 5i inch $663.34 6i inch $796.01 Larger than 6 inch, or for a water supply system Negotiated Rate Base meter charges do not apply to Wholesale Note and Water Supply System Customers ii. Table 'D'and Table 'E' at subparagraph b(c)(3) shall be amended to reflect the following volumetric charges (per 1,000 gallons used/per month): Table D Volumetric Charges for Residential and Commercial Customers Inside the City Limits, Wholesale Customers, Bulk Water Customers, and Water Supply System Customers Water Volume or Type Charges (US gallons) Per 1,000 gallons used/per month 1-4,000 $3.99 4001-10,000 $5.67 10,001 and greater $8.05 Wholesale and Bulk Water $6.44 (unlimited gallons) Either Wholesale and Bulk Water Rate or Water Supply Systems Negotiated Rate, att the discretion oft the City Table E Volumetric Charges for Customers Outside the City Limits Water Volume or' Type Charges (US gallons) Per 1,000 gallons used/per month 1-4,000 $4.99 4001-10,000 $7.09 10,001 and greater $10.06 (Ord. of 3-22-57, $ 1; Ord. No.503, $ 1, 2-28-78; Ord. No.568, $ 1, 11-5-81; Ord. No. 902, $ 1, 9-29-05; Ord. No. 904, $ 1, 11-22-05; Ord. No. 950, $ 1, 4-30-09; Ord. No. 1134, $S 1, 2, 11-10-22 (preceding formerly referenced at Section 25-1) and (Ord. No. 287, $8 1,2, 6-8-61; Ord. No. 421, $ 1, 3-8-73; Ord. 430, $ 1, 5-26-77; Ord. No. 541, $ 1, 2-14-80; Ord. No. 614, $ 1, 10-18-84; Ord. No. 695, $ 1, 10-12-89; Ord. No. 705, $ 1, 10-1-90; Ord. No. 765, $ 2, 10-5-95; Ord. No. 851, $ 2, 9-19-02; Page 2 of 4 Ord. No. 866, $ 2, 9-18-03; Ord. No. 881, $ 2, 11-5-04; Ord. No. 929, $ 2, 9-20-07; Ord. No. 944, S 1,9-26-08; Ord. No. 957, $ 1, 10-15-09; Ord. No. 1010, $ 1, 9-26-13; Ord. No. 1018, S 1, 5-22-14; Ord. No. 1030, $ 1, 9-25-14; Ord. No. 1052, $ 1, 9-8- 16; Ord.1 No. 1060, 5-15-17; Ord. No. 1064, 9-21-17; Ord. No. 1085, 4-18-19; Ord. No. 1100, $ 1, 8-6-20; Ord. No. 1114, $ 2, 9-30-21; Ord. No. 1143, $ 2, 2-16-23, $2, Ord No. 1163, 01-04-2024, Ord No. 1181, 08-15-2024, $ 2,Ord No. 1194, XX-XX- 2025, & ) b. That Chapter 25 'Water and Sewers', Section 25-16 Sewer service charges' oft the Code ofOrdinances, as amended, shall be amended as follows: i. Thej paragraph entitled Class I-Residential." shall be amended to read as follows: Class 1 - Residential. Thirty dollars and five cents ($30.05) per month for the first two thousand (2,000) gallons of water used, plus two dollars and eighty-nine cents ($2.89) for each additional one thousand (1,000). gallons ofv water usage during the most recent months of January, February, and March; however, the maximum charge shall not exceed thirty- eight dollars and thirteen cents ($38.13) per month. New customers without history willl be charged thirty-four dollars and nine cents ($34.09) per month until a usage history is established. ii. The paragraph entitled Class 2-Commercial." shall be amended to read as follows: Class 2 - Commercial (all other than residential, including apartment complexes). Thirty dollars and five cents ($30.05) per month for the first two thousand (2,000) gallons of water used, plus two dollars and eighty-nine cents ($2.89) for each additional one thousand (1,000) gallons of water usage during the most recent months of January, February, and March. For Class 2 service, there is no set maximum monthly charge. New customers without history will be charged thirty-four dollars and nine cents ($34,09) per month until a usage history is established. (Ord. No. 262, $8 2,3, 6-26-58; Ord. No. 309, $ 1, 9-12-63; Ord. No. 452, $ 3, 2-20-75; Ord. No. 473, S 6, 5-27-76; Ord. No. 451, $ 3, 2-14-80; Ord. No. 563, $ 3,5-7-81; Ord. No. 614, $ 3, 10-18-84; Ord. No. 688, $ 2, 8-17-89; Ord. No. 716, $ 2, 10-3-91; Ord. No. 765, S 3, 10-5-95; Ord. No. 851, $ 3, 9-19-02; Ord. No. 866, $ 3, 19-18-03; Ord. No. 880, $3, 10-21-04; Ord. No. 929, $ 4, 9-20-07; Ord. No. 944, $ 4, 9-26-08; Ord. No.957,$2, 10-15-09; Ord. No. 965, $ 2, 9-30-10; Ord. No. 1114, $ 2, 9-30-21 Ord No. 1181, 08-15- 2024, $ 2, Ord No. 1194, XX-xx-2025, 9 SECTION 3 - CUMULATIVE PROVISIONS That this Ordinance shall be cumulative of all other Ordinances of the City of Graham and shall not repeal any of the provisions of such ordinances, except as specified herein, and except in those instances where provisions of such Ordinances are in direct conflict with the provisions ofthis ordinance. SECTION 4 - SAVINGS CLAUSE That all rights or remedies ofthe City of Graham, Texas, are expressly saved as to any and all violations oft the City Charter, City Code, or any amendments thereto that have accrued at the time of the effective date of this Ordinance; and as to such accrued violations, and all pending litigation, both civil or criminal, same shall not be affected by this Ordinance but may be prosecuted until final disposition by the courts. SECTION 5. - SEVERABILITY CLAUSE That it is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this Ordinance are severable and if any phrase, clause, sentence, paragraph or section of this Ordinançe shall be declared void, ineffective or unconstitutional by the valid judgement or decree ofa any court of competent jurisdiction, such voidance, ineffectiveness or unconstittionality shall not affect anyo ofthe remaining phrases, clauses, sentences, paragraphs or sections of this Ordinance, since the same would have been enacted by the Board ofAldermen without the incorporation herein Page 3 of4 of any such void, ineffective or unconstitutional phrase, clause, sentence, paragraph or section. SECTION 6 - PENALTY CLAUSE That any person, firm, or corporation violating any of the terms and provisions of the ordinance shall be subject to the penalties proscribed herein and may be subject to additional fines and penalties as provided in Section 117 of the City Charter. SECTION 6 PUBLICATION BY CAPTION That, upon adoption, the City Secretary ofthe City of Graham, Texas is hereby directed to publish the caption summarizing the purpose ofthis ordinance for two (2) days in the official newspaper ofthe City of Graham, Texas, as authorized by V.T.C.A. Local Government Code Subsection 52.013. SECTION 7- - EFFECTIVE DATE This Ordinance shall take effect on October 15, 2025, provided that, prior to said date, a Public Hearing has been held on the subject contained herein with such Public Hearing held prior to final adoption this Ordinance, the City Council has held three readings of this Ordinance, and at the third reading ofthis Ordinance,a final vote of the City Council indicated a majority in favor ofits passage and adoption. FIRST READING DATE: JUNE 26, 2025 SECOND READING DATE: THIRD READING DATE: READ AND APPROVED ON FIRST READING fhis the 26th day of June, 2025. R. Alex Heartfield, Mayor ATTEST: MaBump Marci Bueno, City Secrelary/Financial Officer Page 4 of 4