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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

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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.

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Revenue

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

The maintenance and operation (M&O) tax rate (which is specifically authorized by the Texas Water Code for operation and maintenance purposes) is currently $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 a wastewater treatment plant system. 

This is due to the various costs associated with maintaining and repairing such a system. With increased expenses and limited revenue, the District may rely on its water and sewer rates to help make up any difference; as in this case.

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