The Edwards Aquifer Authority (EAA) has proposed an almost 8% increase in management fees for municipal and industrial users, a move that could ripple through the water sector and reshape how users interact with this vital resource. The proposed hike, from $90 to $97 per acre-foot in 2026, follows two consecutive annual increases and aims to bolster the authority’s reserves for future needs, particularly as it prepares for a new habitat conservation plan.
The EAA manages pumping from the Edwards Aquifer, a limestone formation that supplies water to over 2 million people across eight counties. The proposed fee increase is part of a broader strategy to build unrestricted reserves in the general fund, allowing for greater financial flexibility. “We’re trying to build reserve capacity in the budget as we look to the future and next habitat conservation plan,” said General Manager Roland Ruiz. This approach could set a precedent for other water management agencies facing similar long-term planning challenges.
The fee increase is primarily driven by the need to prepare for the next Edwards Aquifer Habitat Conservation Plan, which is set to expire in March 2028. The current plan includes costly programs that pay permit holders to reduce pumping during droughts, protecting endangered species like the fountain darter and the Texas blind salamander. The EAA aims to have a financial cushion to handle unknown expenditures tied to the new plan. “Let’s build up a healthy enough reserve in the general fund, knowing we can allocate a portion of that to the habitat conservation plan, but we don’t need to limit ourselves,” Ruiz said.
The proposed budget also reflects the EAA’s recognition that it must catch up after keeping fees unchanged for over a decade. Inflation and the need to maintain financial stability have necessitated this adjustment. However, the exact trajectory of future fee increases remains uncertain. “I don’t have that sort of forecast model to say how much will be enough,” Ruiz admitted, highlighting the complexity of long-term financial planning in water management.
For users like the San Antonio Water System (SAWS), the largest permit holder, the fee increase will directly impact their operational costs. SAWS passes these fees onto customers through an “EAA Pass Through Fee” on water bills. With SAWS also planning its own rate hike in 2026, the combined increases could put pressure on consumers. This situation underscores the interconnectedness of water management decisions and their downstream effects on end-users.
The EAA’s proposed fee increase is not just about raising revenue; it’s about strategic financial planning. By building unrestricted reserves, the authority can respond more effectively to future challenges, whether they are regulatory, environmental, or economic. This approach could influence other water management agencies to adopt similar strategies, emphasizing the importance of financial preparedness in an increasingly uncertain future.
The EAA is expected to hold a public hearing on the proposed budget and fees on October 15, followed by a vote on November 12. The outcome will not only affect the authority’s financial health but also set a tone for how water resources are managed and funded in the years to come. As the sector watches closely, the EAA’s decisions could spark a broader conversation about the balance between financial sustainability and equitable access to water.