Use of Funds

Kaufman 1B residents may have questions regarding the use of taxes and rate order revenue generated by the district. This webpage will help cover questions regarding who approves new rates, why rates are increased, and how the new funds are used.

Expenses

The District’s Board of Directors (“Board”) approves increases to the water and sewer rate order from time to time, as needed, due to a variety of factors. Water and sewer rate increases are typically due to the following factors:

The rising cost of water and wastewater services to the District.
The district's operator, Inframark’s, annual increase to its rates for services provided to the District.
The one-time cost of excess debris and brush pick up services performed by CWD after the storm in June of 2024 (in which the invoice came in above the budgeted amount).
An increase in cost for patrol services.
The costs to repair various water leaks in the District.

We have provided some pictures of necessary, ongoing repairs throughout Kaufman 1B below:

In addition to the costs listed above, the costs for emergency repairs to the District’s water and wastewater system are also accrued.

Things such as the ordinary maintenance costs related to the District’s water and wastewater system or the costs associated with the District’s shared responsibility for maintenance and repairs related to the wastewater treatment plant expansion and aeration basins may drive up the rate.

Revenue

The District has two main sources of revenue: water & sewer rates; and district taxes.

The water & sewer rates and fees established by the District are designed to cover all costs associated with running, maintaining, and improving the public water, wastewater, and drainage systems.

Here is an explanation of what the different charges cover and how they contribute to paying for infrastructure and operator fees:

Water and Sewer Service Rates

The three main components of the Districts rate order that are structured to cover both fixed and variable costs:

Minimum Monthly Charge: This fixed base rate covers the District's ongoing and fixed expenses. It is the fee you pay to ensure necessary infrastructure like pipes, pumps, treatment facilities, and other equipment are ready to deliver services to your connection, guaranteeing the availability of the system.
Water and Sewer Commodity Charges: These are the tiered, usage based fees. This variable revenue is directly related to the volume of water you consume and the amount of sewage collected and treated. This revenue covers the costs of operation, such as electricity, chemicals, and pumps, which increase with higher consumption.

Infrastructure Costs: The District Facility Charge is a one-time charge required prior to any new connection to the system. This charge includes the residential tapping cost, meter cost, labor, and various permits and inspections.

District Taxes

While water & sewer rates help to fund the service and delivery of water, a districts maintenance and operation (M&O) tax rate (which is specifically authorized by the Texas Water Code for operation and maintenance purposes) helps to fund construction, maintanance, and upkeep of the Districts critical infrastructure. This can include water plants, roads, signage, etc.

The Districts M&O rate is currently capped $0.19 per $100 of assessed value, which yields revenues far below what is recommended for a special water district, like Kaufman 1B, that operates it's own wastewater treatment plant system.

The District has called for an election on November 4, 2025 to increase the M&O rate cap to $0.39 per $100 to help fund the growth of the community.

To help clarify the Districts needs, residents are invited to the October 23, 2025 board meeting for an Open House discussion with the Board and consultants.

We appreciate residents' understanding and invite them to https://1b.wfdistricts.com/contact#contact-us-formreach out to us if they have further questions.