Understanding Your Utility Bill

Tyler Water Utilities (TWU) operates as an Enterprise Fund. This means that TWU receives no tax dollars and all costs to operate and maintain the water treatment and distribution system and the wastewater collection and treatment system are covered by the revenues generated from monthly bills.

TWU also collects revenues for the Solid Waste department for solid waste services on the monthly water bill. This reduces the amount of paper that customers receive from the City and reduces the cost to the City for printing bills. All rates and fees on your bill are approved by the Tyler City Council, and any proposed increases are presented and approved in open session of the Council.

Bills also include other fees to fund operation and maintenance costs for the sewer and stormwater collection systems and ensure Tyler can meet growing community demand. For more information, please visit the Rates and Fees page.

Utility Bills are based on usage and the cost to treat, deliver water, maintain the infrastructure, and meet state and federal regulations. Since the system is self-funded, rates reflect the actual cost of service. 

There are various reasons why your bill is higher than other bills. These include:

• You used more water. You can view a 12-month usage history on the left-hand side of your bill.
• You received a new water meter that is accurately recording and transmitting your usage. This is preceded by a letter in the mail and a door hanger notification.
• Your bill is for a longer billing cycle than the previous.
• You may have requested additional services such as a special trash pick-up or meter check.
• The manual reading for your meter was misread. You can request a free recheck of your meter once every 12 months from the Water Business Office.
• Leaks or breaks in your water line or damaged irrigation systems. Automatic irrigation may turn on when you are unaware. Check your irrigation programming regularly.
• Seasonal factors such as additional irrigation, pool maintenance, holiday activities, etc.
• Increase indoor water use such as showers and baths, toilet use/running toilets, laundry, dishwashing, faucet use, leaks in toilets, faucets, or showerheads, etc.

Can my bill be waived or reduced?

Charges are based on usage and service costs. We can, however, review your account for errors, discuss available options or programs, and provide guidance.

Your payment supports the water system exclusively. It supports the water treatment and delivery of safe drinking water to your home or business, pipe repairs, daily operations, and long-term improvements. These funds stay within the utility system.

Why am I paying this if I already pay taxes?

Property and sales taxes fund services like police and fire. Utilities are funded separately by customers based on usage and actual service costs.

In 2023, the City of Tyler completed master plans for water and sewer systems, identifying essential improvements needed to meet Federal, State, and customer expectations. This includes catch up maintenance from past decades when rates were too low to support adequate repair.

In Oct. 2024, the City announced $50 million in improvements to the water and sewer systems to begin fixing issues like pressure, taste and odor, and improve customer experience.

Rates may increase due to aging infrastructure, rising costs or inflation, regulatory requirements from state and federal agencies, and system growth.

In Texas, utilities operate separately from tax-funded services such as fire and police. Your bill pays for the system you use, ensuring fairness and long-term reliability.

No. These funds are legally restricted under Texas Tax Code Chapter 351 and can only be used for Tourism Promotion, Convention and Visitor Related activities, and Arts, historic preservation, and similar uses. It cannot be used for water, sewer, or utility operations.

No. Half Cent Sales Tax revenue is used to fund economic development projects. Under the Texas Development Corporation Act. These funds are restricted to economic development purposes. In limited cases, they may fund infrastructure tied to a specific project, but they may not be used to fund a utility's daily operations or to reduce customers’ bills.

TWU customers get 12 bills a year, but the number of days in each billing cycle can vary because of different month lengths and holidays. Some billing cycles may have more days, leading to higher usage in those months.

Your water bill shows the total amount of water your household uses during a billing cycle and a breakdown of the charges. It also has a monthly usage section that shows the consumption for the previous billing cycles. For more information, visit the Rates and Fees page. 

A water and sewer rate study by NewGen Strategies & Solutions identified former rates were insufficient to fund operations and maintenance. Additionally, Tyler's declining rate structure put opportunities to receive State Funding in jeopardy.

In Oct. 2022, TWU began a five-year move from a declining rate structure, where you paid less for the more water you used, to a uniform volumetric rate structure where everyone pays the same rate per gallon. We also ended the free 2,000 gallons of water that residents used to get every month. This change was required by the State to access funding to help support our utility system and promotes water conservation and fairness. 

We are happy to answer any additional questions or concerns you may have. You can contact us through our online form.

The amount of water used during the billing period multiplied by the per thousand-gallon block rates.

The meter is no longer registering the water passing through it. The register will show the same reading month after month, causing a zero-consumption bill. When a meter is found to be DNR, we will estimate the consumption based on previous months' usage until the meter is replaced. Once the meter is replaced, the customer will be charged for the water that is passing through the meter, which may cause the customer to see higher bills.

When an account has a manual reading entered, that causes a lower-than-average consumption to be billed. The following month(s), a true reading is entered, and due to the previous reading being too low, it causes the consumption to be above their average. The water has gone through the meter but is not billed until the following month(s).

Manual readings are taken at the meter when the amount of water used is not transmitted electronically to the Water Business Office. A meter reader visits each address to visually verify and record the water usage.