SNWA advances $705m capital budget as major projects move to construction

SNWA advances $705m capital budget as major projects move to constructionThe Southern Nevada Water Authority's tentative FY 2026/27 budget features a surge in infrastructure spending, driven by the start of construction on the Garnet Valley water and wastewater systems and ongoing work on the Horizon Lateral.

The FY 2026/27 budget includes $705 million for capital projects, largely funded by recently approved bond proceeds.

SNWA will spend $300 million this year on the Garnet Valley development, split between water transmission and a return wastewater system.

Nearly $58 million is allocated for ozone equipment upgrades, alongside millions for pumping station expansions.

The infrastructure push comes as severe drought conditions persist, with Lake Mead projected to drop an additional 20 feet to protect upstream dam infrastructure.

The Southern Nevada Water Authority (SNWA) is set to significantly increase its infrastructure spending in the upcoming fiscal year, with a tentative $705 million capital budget planned for FY 2026/27. The surge in expenditure marks a transition for the agency's major capital plan, moving from several years of design work into active construction. During a budget workshop on April 16, agency leadership noted that the bulk of the $705 million capital spend will be funded by recently approved bond proceeds. The budget reflects a shift in SNWA's financial profile, with infrastructure commodity charges reaching the end of a six-year inflationary catch-up period. Going forward, rate increases will track consumer price or engineering news record indexes. Meanwhile, the agency has successfully defeased some existing debt, reducing overall principal and debt service costs. A significant portion of the upcoming year's capital budget is dedicated to the Garnet Valley development. SNWA has budgeted approximately $180 million for the construction of the Garnet Valley water transmission system, alongside $120 million for a corresponding wastewater system designed to return water that is not consumptively used. The Horizon Lateral, designed to provide system redundancy for the southern portion of the Las Vegas Valley, represents the largest overall project in the major capital plan, with an estimated total cost of nearly $2 billion once fully underway. For FY 2026/27, $21 million is budgeted for the project, which is currently awaiting a presidential signature to secure right-of-way access to tunnel under Sloan Canyon. Other notable infrastructure investments in the tentative budget include: - Nearly $58 million for ozone equipment upgrades to enhance water treatment safety. - $53.3 million for the expansion of the Sloan and Lamb pumping stations. - $23 million for the Mont Hill pumping station and substation. - $12.6 million for a rate of flow control station at Calico Ridge. - $9.5 million for the installation of pressure reduction valves at Volunteer, Cactus, and Bermuda. - $9.3 million to upgrade flocculation areas. - $2.1 million to begin construction on generation and transmission hookups for the Boulder Flat Solar project. The capital push coincides with a stark update on regional water resources. SNWA staff reported that Lake Powell is currently at 24 percent capacity and Lake Mead at 32 percent. Due to an exceptionally early snowmelt and high temperatures across the Colorado River Basin, actions being taken to protect critical infrastructure and bypass tubes at Glen Canyon Dam are projected to result in Lake Mead dropping about 20 feet lower than previously modeled by the Bureau of Reclamation. Despite the severe hydrological conditions, SNWA's consumptive water use through March remained below both the previous year and the three-year average, reflecting the impact of ongoing conservation programs and turf removal initiatives.