Conroe, Willis ISD Settle Cryar Water Rate Dispute

**Conroe, Willis ISD Resolve Cryar Elementary Water Rate Dispute, Saving District Significant Funds**

Conroe, TX – After an 18-month dispute, the City of Conroe and Willis Independent School District (ISD) have officially resolved their disagreement over water rates for Cryar Elementary School. The settlement, which establishes a new pricing structure and provides a substantial credit to the school district, received final approval from Conroe’s City Council on February 22, 2024, following Willis ISD’s Board approval on February 14, 2024.

At the heart of the matter was Cryar Elementary School, which opened its doors in fall 2022 on Longstreet Road in Willis. Despite its location outside Conroe city limits, the school falls within Conroe’s Certificate of Convenience and Necessity (CCN) area. A CCN legally designates a utility provider with the exclusive right to provide water and sewer services in a specific, often unincorporated, geographic area. This designation meant Conroe, as the sole authorized provider, was charging Willis ISD its higher “outside city limits” rate, which is 1.5 times the rate paid by customers within Conroe’s municipal boundaries. This amounted to an estimated $300,000 annually for the elementary school.

Willis ISD strongly contested these charges. The district argued that as a public education provider serving residents throughout the broader Conroe area, including students who may eventually live within future annexed Conroe boundaries, it deserved the standard in-city rate. The district further contended that state law, specifically Local Government Code Section 402.043, could be interpreted to support their position for customers solely within a CCN but outside city limits, providing a legal basis for their challenge.

Following ongoing negotiations, which included an initial resolution proposed by Conroe in November 2023, a mutually agreeable settlement was reached. The approved agreement establishes a new rate where Willis ISD will now pay the standard “inside city limits” rate plus an additional 25 percent. This new structure represents a significant annual saving for the district, reducing its estimated water bill by approximately $50,000 compared to the previous charges.

The new pricing is retroactive to September 1, 2023. Crucially, Willis ISD will receive a credit for all overpayments made between Cryar Elementary’s opening in fall 2022 and August 31, 2023, effectively recouping tens of thousands of dollars paid under the higher rate during that period.

A key component of the settlement is a “no protest” clause. Under this provision, Willis ISD agrees not to oppose any future annexation of the school site by the City of Conroe. Conroe will also retain its CCN in the area, ensuring its continued authority over water provision. This clause signals Conroe’s long-term growth strategy, as cities often establish utility service boundaries as precursors to eventual annexation.

Conroe Councilman Harry Hardman commended the resolution, describing it as “a very fair and equitable resolution for both parties and a good outcome for the taxpayers.” Willis ISD Superintendent Dr. Tim Eaton echoed this sentiment, expressing appreciation for the collaborative spirit shown by both entities in reaching what he called a “fair agreement.”

The resolution brings an end to a protracted financial disagreement, providing financial relief to Willis ISD while solidifying Conroe’s long-term utility service and growth plans in the area. Cities typically charge higher utility rates to customers outside their city limits because those customers do not contribute to city property taxes, which often help fund and maintain municipal utility infrastructure. The new agreement finds a middle ground, acknowledging Cryar Elementary’s public function while recognizing Conroe’s role as the service provider.