Cibolo Removes $9 Monthly Water Fee, Saves Residents $860K Annually
Meeting: Cibolo City Council, January 27, 2026
Vote: Unanimous (7-0)
Effective: Immediately
Cibolo water customers will see their bills drop by $9 per month after the city council voted unanimously to eliminate the water acquisition fee Monday night.
The fee, which generated approximately $860,000 annually, was passed in 2024 to fund future water purchases. But a recent study by the city's water consultant, LRE Water, confirmed the city has more than enough capacity to meet state requirements—making the fee unnecessary.
"Usually on our water bill, we are charged about $9 every single month to acquire water," said Councilwoman Jennifer Sanchez Stevens at the January 27 meeting. "Being that we hired a water consultant here recently, we went ahead and had an evaluation on how much more water we needed. Came to find out...we are good with water at this particular time, so there's no need for additional water acquisition."
The removal allows the city to cut $1 million from its utility fund budget in 2026 while passing the savings directly to residents.
What Changed
In December 2025, the council had approved fee schedule updates that included utility rate increases. But after LRE Water's analysis confirmed the city maintains more than enough capacity to meet Texas Commission on Environmental Quality (TCEQ) system requirements, staff recommended eliminating the water acquisition charge.
Finance Director Anna Miranda presented the ordinance amendment to council, noting the fee removal appears on page 27 of the updated fee schedule.
"This particular bill will be going down by $9," Sanchez Stevens explained. "There should be substantial savings for our residents."
The city collected the $9 monthly fee from water customers since 2024, building a surplus of approximately $860,000—or more—in the water fund.
New Development Fee Added
While eliminating the resident fee, the council approved adding a $1,500 evaluation charge for new developments seeking water and wastewater connections.
The fee covers engineering consultant reviews to ensure available capacity exists before approving new development. The charge includes $1,500 for water system evaluation and $1,500 for wastewater system evaluation.
Miranda said the development fee ensures the city's infrastructure can support growth without impacting existing customers.
Savings Context
The $9 monthly reduction comes as residents have seen utilities increase in recent years. While wastewater rates saw a small increase in the December fee schedule update, the water acquisition fee elimination more than offsets that change for most households.
Sanchez Stevens emphasized the importance of explaining the change to residents: "I know it's hard to understand what these things mean when you're not following them all the time."
The LRE Water capacity study is available for public review on the city's agenda portal.
Source: Cibolo City Council meeting, January 27, 2026
Meeting video: Available on city YouTube channel
Fee schedule: Ordinance 1515, amended January 27, 2026
