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Council approves resolution to seek TWDB funding for lead service line replacement program
Summary
The council authorized staff to apply for up to $25 million through the Texas Water Development Board’s lead service-line replacement program; MBU staff said the application had to be filed before board and council schedules aligned, and that formal approvals would follow before bond issuance.
Mayor and City Council approved a resolution requesting financial assistance from the Texas Water Development Board (TWDB) for the Lead Service Line Replacement (LSLR) program and authorized staff to proceed with the application process.
An MBU representative explained the TWDB program offers financing with 51% principal forgiveness and 49% low-interest loan terms using Drinking Water State Revolving Fund monies from the Infrastructure Investment and Jobs Act. Because the TWDB call for applications had a tight deadline, MBU staff submitted the application on advice from TWDB and requested retroactive council approval during the meeting; staff said no financial commitment is made at the application stage and any bond issuance would return to the MBU Board and City Council for approval.
MBU’s preliminary inventory found 3,267 galvanized lines requiring replacement, 942 lines of unknown material and two lead service lines on MBU’s side of the meter that had already been replaced during contractor surveying. MBU estimated roughly 3,600 replacements will be required when the plan is finalized. Contractors completed the material survey in July 2024, and MBU crews continue to investigate unknown lines with a plan to finish by the end of 2025. Staff said replacement work is required to begin in October 2027, and the replacement plan will be developed over the next 12 months.
Council voted unanimously to approve the resolution. MBU staff and water treatment staff confirmed that replacement construction work would be performed by contractors rather than MBU crews. Council members said they welcomed the opportunity to pursue state financing that includes a substantial principal forgiveness share.
Action: Resolution approving submission of TWDB application (not to exceed $25,000,000) passed unanimously. Staff will return to the MBU Board and City Council for approvals prior to issuance of any related bonds or deployment of funds.
