Allen residents began paying higher water and sewer bills Oct. 1. The increase follows the North Texas Municipal Water District's approval of a $978 million budget that raises wholesale costs for all 13 member cities.

NTMWD's board of directors approved the fiscal year 2026-27 spending plan at a Thursday, Sept. 24 meeting, Community Impact reported. The $978.4 million budget is roughly 8% higher than last year's $902.4 million plan. Capital spending accounts for the largest share: nearly $555.4 million, followed by $281.9 million in operating expenses and $141.1 million in personnel costs.

Capital investments to increase capacity and maintain infrastructure are the main drivers of rising costs, according to an NTMWD news release.

Those wholesale increases flow directly to Allen households. The Allen City Council adopted a 6.9% water and wastewater rate increase at its Tuesday, Sept. 22 meeting, effective Oct. 1. A resident using 15,000 gallons a month will pay $202.71, up $13.16 from $189.55, according to Community Impact's coverage of the council action.

Allen Community Services Director Steve Massey told the council that NTMWD's costs are climbing because of population growth, rising construction costs, higher prices for treatment chemicals and electricity, and federal and state mandates.

The rate hike is the second straight year of 6.9% increases. Allen's water and sewer rates rose by the same percentage in October 2025, with the city citing higher NTMWD wholesale costs as the primary driver.

$5 billion buildout ahead

The new budget is one slice of a $5 billion infrastructure plan NTMWD has mapped out for 2026 through 2031. The district has earmarked $3.4 billion for the regional water system, $1.2 billion for wastewater infrastructure and $50 million for solid waste over five years.

The largest projects fall under the "Texoma Two-Step" program: two $605 million pipelines that will expand the district's use of Lake Texoma water supplies by 2029. Construction contracts were planned for October 2026. NTMWD Executive Director and General Manager Jenna Covington said in February, when the district announced its $1.7 billion capital improvement program, that growth is driving the spending.

"… We'll have to build new infrastructure at a rapid pace to keep up with the growth and ensure the continued reliability of our essential services," Covington said at the time.

State funding through the Texas Water Development Board's State Water Implementation Fund for Texas (SWIFT) program is estimated to save NTMWD's member cities and customers up to $75 million on the Texoma projects, based on the district's projections.

What Allen pays NTMWD

Wholesale water is Allen's single largest utility expense. NTMWD and solid waste contractual services together cost the city $43.56 million in fiscal year 2025, accounting for 52% of Allen's total business-type activity expenses, according to the city's Popular Annual Financial Report. That figure rose $2 million from fiscal year 2024.

Beyond water and sewer, Allen residents also saw smaller increases take effect Oct. 1: solid waste bills rose $0.80 a month to $20.89, and drainage fees increased $0.75 to $5.25 per single-family home.

City documents show Allen has the lowest solid waste and recycling rates among five NTMWD member cities compared in the rate study. The new rate increases are projected to add $5.7 million to Allen's water and sewer fund revenues.

Allen City Council meets on the second and fourth Tuesday of each month at 7 p.m. in Council Chambers at Allen City Hall, 305 Century Parkway.