AGENDA CAPTION:
Title
Consider approval of Ordinance 2026-17, on the first and final reading, authorizing the issuance and sale of an amount not to exceed $8,310,000.00 of Waterworks and Wastewater System Revenue Bonds, Series 2026B, for improving, constructing, and equipping the water and wastewater utility system in connection therewith including loan origination fees or costs of issuing the revenue bonds and other matters related thereto; and providing for the approval of this Ordinance 2026-17, on one reading as authorized by state law.
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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☒ Environment & Resource Protection - Choose an item.
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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 $8,310,000 loan 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 resolution approving the $5,389,120 in loan forgiveness.
A draft of the ordinance is attached, and the final version will be provided on April 21, 2026, after TWDB provides interest rates. The attached draft is not complete because the information will not be known until after rates are received from TWDB. The final version will include all information.
Council Committee, Board/Commission Action:
N/A
Alternatives:
N/A
Recommendation:
City Council approve the ordinance authorizing the issuance of Waterworks and Wastewater System Revenue Bonds, Series 2026B, in the amount not to exceed $8,310,000.00.