McAllen Public Utility Board Approves Rate Adjustment to Support Long-Term Water Infrastructure

To support the construction and operation of the city’s new North Water Treatment Plant, Brackish Groundwater Desalination Project, and other essential utility services, the City of McAllen Public Utility Board (MPUB) approved a utility rate increase.

Taking effect October 1, 2025, the increase will result in an estimated $14 increase per month on the average residential customer’s combined water and sewer bill.

This rate adjustment represents a major investment in securing the long-term water needs of McAllen’s growing community. As the city continues to expand, it is essential to plan and meet future water demands through sustainable infrastructure. The $200 million loan from the Texas Water Development Board funds the construction of the new North Water Treatment Plant, a project that will expand McAllen’s water supply capacity and ensure reliable service for residents and businesses for decades to come.

“The investment in this new facility is essential for maintaining a safe, sustainable water supply for current and future residents,” said Mark Vega, General Manager, P.E., McAllen Public Utility. “While we understand any increase impacts our customers, this decision ensures McAllen’s water infrastructure keeps pace with future demand and that we are well-prepared to meet those demands.”

The rate increase will help offset the debt service associated with the 30-year repayment of the loan and support other operational costs tied to maintaining and improving McAllen’s water and wastewater systems.

Residents can find detailed rate information and FAQs at www.mcallenpublicutility.com or by contacting McAllen Public Utility’s customer service line at (956) 681-1600.