North Texas Municipal Water District (NTMWD)

1. What is the North Texas Municipal Water District and what is making their rate so high? The NTMWD is a wholesale water provider serving more than 1.6 million people across nearly 90 communities in 10 North Texas counties, including the City of Rowlett. This water is purchased by the City of Rowlett and then passed on to Rowlett customers. •Most recent rate increase effective 10.1.17: 25 cents per 1,000 gallons •FY18 NTMWD rates: Customer Cities $2.83/1,000 gal, Member Cities $2.78/1,000 gal NTMWD rate increases ensure reliable, uninterrupted water delivery now and in the future by maintaining NTMWD’s existing system and funding future expansions. 2. What is "Take or Pay"? Rowlett is a “Customer” City of the North Texas Municipal Water District (as opposed to one of the 13 “Member” Cities). Like many such wholesalers, the District has a “take-or-pay” provision in the contract that requires the annual purchase of a minimum amount of water based on the highest annual usage. For Rowlett, this amount is 3.2 billion gallons, which was set after the drought of 2006. Over the past 13 years, Rowlett has paid $9.9 million for water it did not sell under the “take-or-pay” agreement with NTMWD. •Requires annual purchase of a minimum amount of water (3.2 billion gal) based on highest annual usage (set back in 2006/2007) •Actual water delivered to Rowlett customers was less than 2 billion gal FY17. •City has to pay for the minimum 3.2 bil gal whether it is sold to customers or not = drives up customer cost •Expanded customer base will drive reduce effect of "take or pay"

Current NTMWD Capital Projects

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1. SB2 and the City Tax Rate
2. Sapphire Bay
3. Multi-Family Developments
4. Bayside Project History
5. Utility Bills
6. North Texas Municipal Water District (NTMWD)
7. North Texas Municipal Water District (NTMWD) Cost of Service Review
8. Economic Development
9. Streets and Alleys
10. Village of Rowlett Downtown
11. Liquor Stores
12. Senior Tax Freeze and Exemption
13. Parks
14. Scenic Point Park
15. Rowlett Community Centre
16. State Highway 66 Median Beautification Project
17. Rowlett Public Library
18. Rental Housing Standards Program
19. Housing Finance Corporation