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Hays County orders $542,360 water‑availability study and directs creation of a capital improvement fund
Summary
Commissioners approved a $542,360 contract with HDR Engineers for a countywide water study to inform development rules and the CIP, and directed staff to develop a capital improvement fund to save for future infrastructure rather than rely only on debt.
Hays County Commissioners Court on Jan. 2026 authorized a professional-services contract (not to exceed $542,360) with HDR Engineers to complete a countywide water-availability study and directed county staff to develop an operational plan for a new capital improvement fund.
Commissioner comments and staff presentations emphasized the study's role in supporting the rewrite of development regulations, informing where water comes from for utilities and cities, and quantifying supply availability for potential large water users (for example, data centers). Commissioners said the 2011 water study is out of date and that the HDR work will inventory wells and utility supplies; collect data from regional suppliers such as GBRA and LCRA; and model future demand and flood/flooding impacts associated with growth patterns.
Commissioner Hammer and others framed the study as urgent for both the West Side (groundwater dependence and small systems experiencing dry wells) and the East Side (rapid housing growth and concerns about flooding and large users). Commissioner Smith asked that the scope include identification of small and failing community systems; he said some systems have recently failed and required TCEQ intervention.
Separately the court directed the county administrator and budget officer to develop a capital improvement/capital infrastructure fund to set aside general-fund resources for future large nonrecurring projects, with staff to return with implementation details (sweep rules, target fund balance, reserved amounts, and legal constraints about which revenue sources may be used). Budget staff noted the county typically maintains a 3–6 month fund balance; the proposed fund aims to reduce reliance on debt issuance for some projects and to smooth fiscal planning.
What happens next: HDR will commence data collection; staff will return to court with operational recommendations for the new fund as part of FY27 budget planning.
