AGENDA CAPTION:
Title
Consider approval of Resolution 2026-191R, approving the Alliance Regional Water Authority’s issuance of contract revenue bonds for the City of San Marcos in an aggregate principal amount not to exceed $15,360,000.00 including approval of the Bond Resolution and other related matters in connection with the Regional Water Supply Contract Project; authorizing the City Manager, or her designee, to execute any necessary related documents; and declaring an effective date.
Body
Meeting date: October 20, 2026
Department: Director of Utilities, Ekaterina Fitos
Amount & Source of Funding
Funds Required: $543,837 for FY27
Account Number: 22033620 - Debt Service
Funds Available: Yes
Account Name: W-WW Debt Service
Fiscal Note:
Prior Council Action: Council approval in 2008 for ARWA project participation; 2017-154R, 2019-203R, 2020-224R, 2022-237R, and 2023-208R, 2024-209R approval of approximately $152,900,000 of debt, and 2025-207R for issuance of contract revenue bonds in the aggregate principal amount of $12,015,000 and other resolutions related to engineering services, etc.
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Background Information:
The City approved and executed the Regional Water Supply Contract effective January 15, 2008, for the financing, construction and operation of the Regional Water Supply Project. The City has previously requested the Alliance Regional Water Authority (ARWA) issue a separate series of contract revenue bonds for the City in an amount not to exceed $103,415,000 to finance the City’s contribution to the design, construction and equipment of the Phase 1A/1B Improvements of the Regional Water Supply contract.
In 2024 ARWA began the design for the expansion of its system (the Carrizo System Expansion). In October 2025 ARWA hired a Construction Manager-at-Risk to complete the Carrizo System Expansion. The additional funding is the last capital investment needed to complete the expansion work which will provide an additional 2,917 acre-feet per year of water supply for San Marcos. The ARWA Board further approved State Water Implementation Fund for Texas (SWIFT) funding through the Texas Water Development Board in August 2026. San Marcos ARWA Board members who voted in support of completion of the Carrizo System Expansion were Marcus Naiser, Joe Pantalion, Jane Hughson, and Robert Goode.
This debt issuance covers the San Marcos portion of the completion of the ARWA Carrizo System Expansion. The ARWA principal amount is $42,840,000 with San Marcos’ share being $15,360,000. The estimated FY27 debt payment for this issuance was incorporated into the FY27 utility rate model, budget, and rate structure.
The other ARWA members are scheduled to approve their resolutions October 15th-22nd, the ARWA Board will approve on October 28th, and ARWA will close on the loans by December 1, 2026.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends approval.