Conroe Industrial Development Corporation adopts FY 2026 budget, earmarks $14.4 million for water-well work

The Conroe Industrial Development Corporation on Sept. 24 approved its fiscal year 2026 budget, which projects $18,795,307 in revenues and $27,427,432 in expenses and includes a $14.4 million contribution for water-well infrastructure.

Board members voted to adopt the budget at the meeting; the motion passed by voice vote with all directors present voting in favor.

The approved budget projects a beginning fund balance of $31,057,618 as of Oct. 1, 2025, and an anticipated net loss of $8,632,125 for FY 2026. The budget document attributes the projected net loss primarily to the $14.4 million contribution toward water-plant infrastructure. The corporation expects to end FY 2026 with an estimated $22,400,000 in fund balance.

Board staff said the $14.4 million figure reflects anticipated contributions next fiscal year; total commitments for the water-plant program could reach about $22.5 million depending on project timing and future allocations. Board members discussed schedule uncertainty for Water Plant 32 and Water Plant 33; staff said Plant 32 is expected to be on schedule for December 2026 and Plant 33 has evolving cost estimates.

The FY 2026 budget also reflects a 6% cost-of-living adjustment (COLA) included at council direction, budgeted at $16,400 but noted as a placeholder that assumes a fully staffed complement. Staff said actual costs will likely come in below the placeholder amount given current vacancies.

The board’s vote to adopt the budget followed a brief discussion of prior reductions to supply and travel line items made since the July budget discussion. A member of the board called the use of reserve funds “a very appropriate use of our reserve fund to meet that current need.”

The board approved the budget by voice vote; the meeting record shows all present directors voted in favor.