Conroe's proposed $354 million budget for 2025 was bumped by $12 million to ensure funding for new water wells to address its growing water concerns.

Council approved its budget Thursday with a tax rate of 42.47 cents per $100 property valuation. Additionally, while the city implemented a hiring freeze for 2025, council approved raises for staff.

After water shortage issues caused by explosive growth surfaced earlier this year, council focused on construction of four new water wells. To help fund them, the city turned to the Conroe Industrial Development Corp. and implemented fees for apartment complexes.

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In April, council learned its aging infrastructure was no longer keeping up with multifamily development, creating critical water issues for the city.

In June, the council unanimously agreed to amend its irrigation ordinance to limit the days residents can water their lawns.

In August, Council Member Marsha Porter championed implementing fees for apartment complexes within the city limits. She said the city needs $54 million to construct four new water wells in the next two years.

Collin Boothe, assistant city administrator and director of finance, said water and sewer fees are based on cost of service. Most of those costs are fixed, he said.

"We seek to cover our operations costs and debt service costs," Boothe said. "We do not seek a profit off our water and sewer charges."

Based on a 3,000-gallon bill, residential customers pay about $66.47, while residents of a 354-unit apartment complex pay $19.16 for the same usage. With the fee implemented, those apartment customers would now pay $49.16.