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Laredo utilities outline $60M-$70M CIP, seek grants and possible rate increases; $26M Corps agreement cited

City of Laredo Utilities Advisory Committee · January 15, 2026

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Summary

Staff updated the committee on capital plans and funding: a large 2026 CIP for water and wastewater (figures cited around $60–70 million), five proposals to apply to the Texas Water Development Board initiative, a signed $26 million agreement with the U.S. Army Corps of Engineers to improve supply redundancy, and the possibility of 7–8% rate increases in 2027 to close funding gaps.

City utilities staff briefed the City of Laredo Utilities Advisory Committee on Jan. 15 about planned capital projects, external funding pursuits and the need for additional revenue to address aging infrastructure.

Dr. T described an expansive capital-improvement program (CIP) for water and wastewater, citing figures in the meeting between $60,000,000 and $70,000,000 for projects and saying the department plans to use prior bond proceeds and pursue new bonds for 2027 and beyond. "We're looking at $60,000,000 both on the water and wastewater side... 70,000,000 is basically your CIP only," Dr. T said.

Staff said it has prepared five proposals to pursue part of a Texas Water Development Board initiative that opened a $1,000,000,000 program; Dr. T outlined a consultation phase through mid-February and a submission window in July–August 2026. "We actually do qualify under certain areas... we have 5 proposals ready for the city," he said.

Dr. T also said the city signed an agreement with the U.S. Army Corps of Engineers for about $26,000,000 to connect systems so the city would maintain water delivery if one plant goes down. "We had we have signed an agreement with them with a $26,000,000," Dr. T said, adding Corps-led design and city support for specifications are forthcoming.

To close funding gaps, staff said they may request a rate increase for water (roughly 7%) and wastewater (around 8%) during the 2027 budget process; Dr. T said those increases would help meet 80% of CIP needs in 2027–28. The committee was asked to anticipate that request when engaging councilors during the budget process. No formal rate change was adopted at the meeting.