McAllen residents will begin to pay more for sewer and water starting on Oct. 1, 2025.

The city is increasing the rates to help pay off a $200 million loan they received from the Texas Water Development Board to build the city’s north water treatment plant.

“We have to increase the rates to be able to offset revenue to pay that debt service,” McAllen Public Utilities General Manager Mark Vega said.

Customers are currently paying about $60 per month, and the increased rates means residents will see an increase of $14 per month for sewer and water.

The city estimates they will collect about $10 million in revenue each year because of the hike, and expect to pay back the borrowed money in 30 years.