Conroe reviews five‑year CIP with $375M in proposed water and sewer debt; council orders wastewater alternatives study

Conroe city staff presented the proposed five‑year capital improvement program (CIP) at the July 10 budget workshop, highlighting large water and sewer needs and related borrowing plans.

What staff presented: Public‑works and finance staff said the five‑year water and sewer CIP includes approximately $375 million in new debt over five years, with FY2026 shown in the presentation as roughly $39.2 million. The presentation emphasized prioritizing projects that have outside funding or required relocations (for example, TxDOT relocations), and noted mitigation funding tied to the Conroe Industrial Development Corporation (CIDC) for selected well projects.

Key decisions and directives - Wastewater study: Staff told council they will bring a formal alternatives analysis/study for wastewater treatment options (land acquisition, design and construction phases separated in the CIP). Public‑works staff said they plan to engage consultants (Fries & Nichols was referenced) to evaluate alternatives including expansion options at Conroe Central and Southwest and a potential new northwest regional plant. The study estimate cited during the meeting was approximately $360,000, and staff said the analysis is needed before large land acquisitions or construction commitments.

- Wells and redrills: The city identified a series of well redrills and new wells (Wells 32, 33 and others) and said some of those projects have partial funding commitments from CIDC and congressional/senate appropriations earmarked to the city. Staff reported they had already acquired at least one tract for well 33 and continue to pursue additional parcels.

- Debt metrics and funding policy: Finance staff presented debt‑to‑taxable assessed value (TAV) projections showing the five‑year CIP remaining under the city’s policy limit of 5% general‑obligation debt/TAV. The presentation and council discussion also explained that because of a pending SJRA (San Jacinto River Authority) lawsuit the city currently relies on certificates of obligation for some water and sewer borrowing instead of water‑sewer revenue bonds, a circumstance staff said affects coverage and reserve calculations.

Notable cost reference: McGuire (public‑works) cited a recent estimate for an expansion at Conroe Central of about $296 million for roughly 6 million gallons of additional capacity, a figure used in council discussion as an example of the scale of treatment‑plant costs.

Why it matters: Council members and staff repeatedly described the scale of Conroe’s growth and the urgency to add treatment capacity, additional well production, and system redundancy to meet demand. Staff cautioned that multi‑year projections assume a mix of funding sources, possible grants, and impact‑fee policy changes that could alter the city’s borrowing needs.

Follow up and next steps - Staff will advance the wastewater alternatives analysis and return to council with a scope, estimated costs, and timeline for land acquisition and design. - Finance and public works will continue to refine CIP project lists, prioritize projects with outside funding, and reflect any grant or impact‑fee policy changes in future projections.

Ending: Council thanked staff for the CIP rework and asked for updated project detail and maps; staff noted the CIP is a five‑year working plan that will be updated annually as grants, land availability, and market conditions change.