TYLER, Texas (KLTV) - Tyler residents will likely see their monthly utility bills climb for the second consecutive year under a proposed fiscal year 2027 budget aimed at funding a massive, federally mandated overhaul of the city's aging sewer system.

The proposed budget, presented to the City Council on Wednesday, outlines a two-phase, $10 increase to the municipal "regulatory compliance fee." The charge, which currently sits at $26. 17, will rise by $5 on Oct. 1 and another $5 on Jan. 1, 2027, bringing the total monthly compliance fee to $36. 17.

The fee is a dedicated fund used exclusively to pay off the debt Tyler has taken on to satisfy a 10-year federal consent decree.