AGENDA CAPTION:
Title
Consider approval of Resolution 2026-63R, approving a principal forgiveness agreement with the Texas Water Development Board in the amount of $5,389,120.00; and declaring an effective date.
Body
Meeting date: April 21, 2026
Department: Finance and Engineering/Capital Improvement
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: September 2, 2025, City Council approved Resolution 2025-160R authorizing the filing of an application with the Texas Water Development Board seeking financial assistance for the Highway 80 Utility Project. September 16, 2025, City Council approved the Fiscal Year 2026 Capital Improvement Program (CIP). February 3, 2026, City Council received a presentation on the CIP projects included in the Fiscal Year 2026 CIP at a work session.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Quality of Life & Sense of Place
Public Safety, Core Services & Fiscal Excellence
Environmental Protection
Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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☒ Core Services
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Wastewater Master Plan
Background Information:
A Project Information Form (PIF) for financial assistance from the Texas Water Development Board (TWDB) for the Highway 80 Utility Project was first submitted in 2023. The project includes a wastewater lift station at Highway 80 and Old Martindale Road, a wastewater force main, and a reclaimed water transmission line. These components were identified in the City’s wastewater and reclaimed water master plans.
The PIF did not score high enough in 2023 to get invitation to apply for funding. The application remained in the queue while the TWDB finalized the applications of those who scored higher than the City. In June 2025 TWDB invited the City to apply for the Clean Water State Revolving Fund (CWSRF) and in September 2025, City Council approved submitting an application, and the City was awarded $13,699,120 in financial assistance. This award includes an $8,310,000 loan and $5,389,120 in loan forgiveness (grant funding). The loan portion will be financed through TWDB’s purchase of Water and Wastewater Utility Revenue Bonds.
This item is for approval of the $5,389,120 loan forgiveness through TWDB. Previously, TWDB did not require separate approval for the loan forgiveness portion. However, they now require a resolution specifically approving the loan forgiveness. Alongside this item, City Council will also consider a separate ordinance approving the $8,310,000 loan.
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
City Council approve the resolution authorizing the principal forgiveness agreement with the Texas Water Development Board in the amount of $5,389,120.00.