At an Aug. 27 regular meeting, the San Jacinto River Authority approved the operating budget for FY 2026-27, set to begin on Sept 1. Within the budget, the Groundwater Reduction Plan rates are expected to remain the same, while the raw water rate will rise.
The breakdown
Presented by SJRA Controller Jamye Lewis, the SJRA currently has nine divisions as a quasi-state agency. When creating the budget for the upcoming fiscal year, Lewis said the focus was on making sure the divisions can provide high levels of service to customers rather than generating revenue.
The nine divisions and their total operating revenues for FY 2026-27 are:
Region H (Greater Houston area): $653,469Bear Branch: $582,618The divisions' individual budgets are kept separate, and customers only pay for the divisions where they are located.
The total budget for the raw water enterprise for FY 2026-27 is $22.7 million. The money will go to pay expenses in four separate divisions.
According to meeting documents, the raw water enterprise is made up of Highlands and Lake Conroe divisions' revenues and expenses from the raw water supply system that cannot be specifically allocated between the two divisions. Expenses for the flood management division and any remaining general administration expenses are also funded through the enterprise.
- Highlands division: $18.8 million
- Flood management division: $1.14 million
General administration division: $72,712Lake Conroe division: $2.6 millionBy the numbers
Lewis said among the upcoming rates for FY 2026-27, the groundwater pumping fee and surface water fee for customers in the Groundwater Reduction Plan will remain the same at $2.51 and $3.10 per 1,000 gallons, respectively. According to its website, the SJRA’s Groundwater Reduction Plan supplies water to different customers such as municipal utility districts, investor-owned utilities and municipalities. The purpose of the plan is to support water conservation and ensure there is enough water to support growth within the SJRA’s district, according to the SJRA.
By participating, these entities can purchase water at a certain wholesale rate and in turn, provide retail water to their own customers. All fees collected from the service go to help maintain and operate the surface water treatment plants, according to the SJRA.
While the GRP rate remained the same, there will be an increase to the raw water rate from $0.66 per 1,000 gallons to $0.72 per 1,000 gallons, which represents a 9.09% rise. The rates will remain at $0.66 from September to December and will rise to the newly proposed rates in January. Lewis said the reasoning behind this rate increase is to help fund various projects in the Highlands division.
At the July 23 regular meeting, Lewis said locals in the Highlands division are appreciative of SJRA’s recent moves to invest in their community. From 1990 to 2008, there was a basic flat raw water rate and very little investment in the Highlands division, according to Lewis. It wasn't until 2012, with the passage of four bonds, that aging infrastructure in the division was addressed by new SJRA management, Lewis said.
