Allen residents depend on the North Texas Municipal Water District for their water and wastewater service. The district's board of directors just approved a $978.4 million budget for fiscal year 2027.

NTMWD's board voted to approve the spending plan at its Sept. 24 meeting, Community Impact reported. The budget represents a roughly 8% increase over the prior year's $902.4 million plan. The new fiscal year began Oct. 1 and runs through Sept. 30, 2027.

Capital investments to expand capacity and maintain aging infrastructure are the "main drivers of the rising costs," according to a district news release cited by Community Impact. NTMWD funds its budget through wholesale rate charges to member and customer cities.

Where the money goes

Nearly $555.4 million of the budget goes toward capital expenditures. Another $281.9 million covers operating expenses, and $141.1 million funds personnel costs.

The budget is part of NTMWD's $5 billion infrastructure investment plan stretching from 2026 to 2031. The district has planned more than $1.6 billion in capital projects during the coming fiscal year alone, to be financed through bonds and the Texas Water Development Board.

Over the next five years, NTMWD plans to invest $3.4 billion in its regional water system, $1.2 billion in wastewater infrastructure and $50 million in its solid waste system.

Allen's stake

Allen is one of 13 member cities in NTMWD's regional water system, which serves roughly 2.4 million people across a 2,200-square-mile area. The district also provides wastewater services to 24 communities and solid waste disposal for about 1 million people.

Jenna Covington, NTMWD executive director and general manager, said in a statement that the spending reflects the region's rapid growth. She said the district must have vital systems in place to protect public health and safety before new residents arrive.

In February, when NTMWD announced its $1.7 billion capital improvement program, Covington described the pressure behind the spending: "North Texas is home to a dynamic regional economy, and that's driving the increasing demand for water."

The district reported record water demand in each of the past four years. NTMWD's five-year plan calls for $5 billion in infrastructure spending through 2031.