A municipality must charge enough for utility services to cover system costs and debt, may not give free service except to municipal public schools or municipal buildings and institutions, and must post and update charge terms online when charges change.
Sec. 1502.057. CHARGES FOR SERVICES. (a) A municipality shall impose and collect charges for services provided by a utility system in amounts at least sufficient to pay: (1) all operating, maintenance, depreciation, replacement, improvement, and interest charges in connection with the utility system; (2) for an interest and sinking fund sufficient to pay any public securities issued or obligations incurred for any purpose described by Section 1502.002 relating to the utility system; and (3) any outstanding debt against the system. (b) The rates charged for services provided by a utility system must be equal and uniform. A municipality may not allow any free service except for: (1) municipal public schools; or (2) buildings and institutions operated by the municipality. (c) The board of trustees having management and control of a utility system located in a county contiguous to the Gulf of Mexico and bordering the United Mexican States may impose and collect the charges authorized under this section for services provided by the utility system. (d) A municipality that imposes operating, maintenance, replacement, or improvement charges under Subsection (a) shall: (1) publish the terms and conditions of the charges on the utility system's and the municipality's Internet websites; and (2) not later than the 30th day after the date the municipality adopts a change to the terms and conditions of the charges, update the utility system's and the municipality's Internet websites to reflect the change. Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Renumbered from Government Code Sec. 1502.059 and amended by Acts 1999, 76th Leg., ch. 1064, Sec. 22, eff. Sept. 1, 1999. Amended by: Acts 2013, 83rd Leg., R.S., Ch. 341 (H.B. 2105), Sec. 2, eff. June 14, 2013. Acts 2025, 89th Leg., R.S., Ch. 572 (H.B. 1991), Sec. 1, eff. September 1, 2025.