The Tarrant Regional Water District board has approved a $57.3 million budget for the 2026 Central City/Panther Island flood control project. The amount is lower than the $85 million allocated this year.
Board members approved the budget and new tax rate on September 16. The budget does not include $12 million set aside for canal construction to reroute floodwaters near downtown Fort Worth.
The board set the tax rate at 2.65 cents per $100 valuation, down from 2.67 cents. Officials expect to collect approximately $32 million in property taxes next year, nearly 10% more than in 2025, due to higher appraisals across Tarrant County.
Homeowners will see a lower tax rate, but the district will raise its water sales rate by 2.2% to $1.43 per 1,000 gallons. Cities such as Fort Worth and Arlington buy untreated water at that rate before processing it for residents.
Revenue from water sales will support $2.2 billion in projects over the next seven years. These projects include storage expansions, facility upgrades, pipeline replacements, and the Integrated Pipeline Project. District leaders said the investments align with long-term planning through 2050 as the customer base is expected to nearly double.
The $1.16 billion Panther Island project, managed by the U.S. Army Corps of Engineers, will build a bypass channel to divert the Trinity River. The work will reduce flood risk for 2,400 acres near downtown. The district will cover its share using $250 million in bonds approved by voters in 2018.
The 2026 budget covers costs for pedestrian bridge construction, land purchases, demolition, environmental reviews, and debt service. Construction of the canal system is expected to begin late next year, according to budget documents.
The district also allocated $800,000 for land sales consulting tied to the first phase of Panther Island development. “The first phase of development planning is scheduled to begin this fall,” program manager Susan Alanis said in July. Officials are collaborating with U3 Advisors to develop a sales strategy for 36 acres.
Another $3.3 million will fund recreation improvements, including trail safety upgrades. More than $928,000 will go toward events and environmental programs along the Trinity River and nearby lakes, including Fort Worth’s Fourth and Mayfest.