by The Tarrant Regional Water District is proposing a 2.2% water rate hike due to increased customer demand and to fund maintenance projects scheduled over the next seven years.
Water district general manager Dan Buhman and chief financial officer Sandy Newby presented the proposed 2026 budget to the agency’s board members during a July 9 meeting. The board is set to consider adopting the budget in September.
If approved, the 2.2% increase in water sales would bump the rate from the current
$1.40, approved in the fiscal year 2025 budget
, to $1.43 per 1,000 gallons. The increase would put the water district’s 2026 revenue from water sales at $186 million, a 5.81% increase from revenue earned in 2025, the budget projects.
How much money does the water district expect to earn and spend in 2026?
The budget projects the water district will put $199 million toward expenses and will earn a total of $186 million in revenue in 2026. This is up from the $176 million earned in water sales and the $186 spent in maintenance, system improvements and other water district services in 2025.
Fort Worth’s costs at the proposed rate would account for $110 million in water sales out of the projected $186 million for 2026. Water district staff project Fort Worth will use over 77 million gallons of water that year.
The increase in the $1.40 water rate would fund $2.2 billion worth of large capital projects through 2032, with some of those projects to be funded directly through the water district’s revenue in order to avoid debt and paying interest rates. Resident water usage rates for 2026 are provided by municipalities.
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Major projects listed in the water district’s capital improvement program include the construction of the
Marty Leonard wetlands
, replacing aging water and pipeline infrastructure, and expanding reservoir capacity and water storage operations.
The proposed budget is not reflecting a “significant increase” due to delays in construction, designing and planning, Buhman said.
The suggested increased rate in water sales comes as the district works to take on cost-effective projects and avoid going over budget or creating debt, Newby said. Additional revenue supports water supply expansion efforts through 2050 as the district expects its customer population to nearly double in the next 50 years.
Additionally, the district found water usage from municipalities including Fort Worth, Arlington and Mansfield went up by 3.5% between fiscal years 2024 and 2025, Newby said. While the water district oversees the supply and sale of water across 11 counties, cities are solely responsible for treating the water.
In an attempt to maintain cost-effectiveness, the water district is looking for loans and grants primarily at the state level, including the
$1.7 billion
in flood control and mitigation approved by the Texas Legislature, Buhman said.
The new state funds will support projects and strategies outlined in the Texas Water Development Board’s
state flood plan
, issued in 2024, which includes flood mitigation projects overseen by Fort Worth’s stormwater management program and the city’s levee system.
The water district is paying close attention to state funds following budget cuts taking place at the federal level. Buhman noted the Environmental Protection Agency’s Clean Water State Revolving Fund
lost 98% of its funding
following the issuance of the federal 2026 budget under President Donald Trump.
The federal program provides financial aid for construction and costs of wastewater treatment infrastructure and water quality projects.
That funding cut is playing out locally in Tarrant County, said Buhman.
“That actually has an impact as well,” Buhman said. “Those programs are really focused on treatment, but you can see what’s happening at the federal level when it comes to funding of water projects.”
Nicole Lopez is the environment reporter for the Fort Worth Report. Contact her at
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