PALO PINTO—Water district customers may be saddling another rate hike due to a multimillion-dollar expense added to the already pricey Turkey Peak Reservoir Project for rerouting traffic to Ward Mountain Road when part of FM 4 is submerged by the new lake.

The Palo Pinto County Commissioners Court inked an interlocal agreement and resolution with the Palo Pinto County Municipal Water District No. 1, May 1, for rebuilding and maintaining the deteriorating Ward Mountain Road when the reservoir is complete – a task district and county officials claim the Texas Department of Transportation promised to do under a verbal agreement, but later reneged.

The agreement states the water district will also provide $82,000 annually for ten years to cover the county’s maintenance expenses.

PPCMWD Manager Howard Huffman said the deal will cost an additional $15-$20 million. It will be funded by ratepayers, who already saw their water bills skyrocket 146% in 2023 to pay back a $200 million state loan for the reservoir and replacing the aging Hilltop Water Treatment Plant.

The potential rate increase surprised Commissioner Jeff Fryer, who said he wasn’t aware customers would be burdened with additional fees.

“It will raise the rates,” Huffman confirmed. “But it will not be a significant increase when you look at the overall $277 million going into Turkey Peak and its supporting infrastructure.”

Project officials are turning to funding streams outside of the Texas Water Development Board’s $200 million loan to pay the remaining $77 million.

Some meeting attendees argued another hike is too much of a strain. Currently, the water district serves 31,000 customers in Palo Pinto and Parker counties, including the City of Mineral Wells and its seven water wholesalers, according to the Turkey Peak Reservoir project website.

“I’m not so much against this Turkey Peak Reservoir as I am what it’s doing to our low-income citizens,” Mineral Wells resident Leah Burns told the court. “Let the rich people pay. Tax the rich. I sure wouldn’t mind paying a little extra to help some people who need it.”

Prior to the May 1 meeting, Texas Rep. Mike Olcott, of Aledo, sent a letter to the Mineral Wells City Council asking them to lower the rate. He told the Palo Pinto Press that water rates should have been increased gradually to match actual debt, instead of “causing such an immediate financial hardship on so many customers all at once.”

The GOP lawmaker said his staff enlisted the help of the TWDB to perform a rate analysis and calculate a lower number.

“It is my opinion that current water rates should be set to service only the current debt of $97 million – not the future debt of $200 million if the project overcomes delays due to mismanagement,” Olcott wrote in an email to the Palo Pinto Press. “Upon our analysis using projections provided by the TWDB, we believe that the rate could be reduced by $4 per 1,000 gallons, assuming water consumption remains constant and no new debt is incurred.”

According to the Mineral Wells Water Customer Service Department, current billing is broken down by tiers. For zero to 2,000 gallons of water, ratepayers are charged 12.90 per 1,000 gallons on their monthly bills. That rate jumps to $14.84 for 2,001-5,000 gallons and $17.08 for 5,001-8,000 gallons.

“The residential ratepayers and wholesalers have been forced to pay for debt incurred at least two years prematurely, all while the Water District fumbles around trying to get their ducks in a row,” Olcott added.

Mineral Wells Councilwoman Beth Watson said rates won’t be determined until budget meetings this summer and invites the public and area leaders to attend. and secure water for future generations and expected population spikes.

“Every summer the council reconsiders the rates based on the current information available,” Watson told the Press. “I am aware that Mr. Olcott has done his own rate analysis and hopefully he will share it with the council during our 2026 budget deliberations.”

In response to the invitation, Olcott told the Press, “The council is the governing body and should take measures to reduce the rate to an appropriate level to satisfy current annual debt. They have the same numbers I have and should bring the rate down accordingly.”

Plans for Turkey Peak have been under review for decades and it’s time to sink or swim concerning the area’s future water needs, the councilwoman added. The new reservoir will be located immediately south of Lake Palo Pinto and is expected toincrease water storage capacity by 83%.

“Without water from Lake Palo Pinto and Hilltop Water Treatment Plant, no one could even come to work at this courthouse,” Watson told commissioners. “We are all in this together. I encourage you to proudly stand up… and say I voted for that and I’m proud of it because water is life.”

Several attendees at the standing-room-only meeting blamed the added costs on county and water district officials failing to secure a written memorandum of understanding with TxDOT about alternative routes, upgrades and maintenance.

“Everything has got to be in writing,” said Lake Palo Pinto resident Joey Miller. “A handshake is sweet out here, but that isn’t how things fly. It’s going to be a crap show. I can feel it coming.”

TxDOT is reviewing the ILA, but told the Press there was never a verbal or written agreement with the water district and the state agency would not be involved in the future.

“Both the Palo Pinto County Municipal Water District and Palo Pinto County passed resolutions requesting TxDOT abandon the affected portion of FM 4,” said TxDOT Public Information Officer Michael Peters. “Both resolutions also committed to maintaining connectivity by upgrading Ward Mountain Road with no expectation that TxDOT would reconnect FM 4 in the future.”

Another cost concern is over delays. Bid opening for the construction of the lake project was set for last January, but postponed until summer because it did not include local contractors, as required.

“Since I’ve been on the council, the idea of what this is going to cost has probably more than doubled,” Watson said of the overall project. “The best thinking that we’ve come up with is that every month of delay costs about $200,000 more. That’s just considering municipal inflation.”

The speed on the upgraded roadway will be 40 mph. Huffman said the Ward Mountain Road improvements are expected to wrap in the summer of 2027. That would also be the earliest FM4 would shut down.