Council OKs MOU to pursue wholesale water agreement; city invited to apply for TWDB funding for new water plant

City staff told the council Aug. 12 that the city and Cash Special Utility District are moving toward a wholesale water agreement and that the council should approve a memorandum of understanding to begin that process. The council also authorized staff to file an application to the Texas Water Development Board (TWDB) for potential low-interest or principal-forgiveness funding for the city—s planned new water treatment plant. City staff said Cash Special requested 1.5 million gallons per day of wholesale water and that the district wants the security of an MOU while the city builds a new treatment plant scheduled for completion around 2028. Staff stressed the MOU is an intent document and not a binding contract obligating a future council to enter a final wholesale agreement. Staff said the MOU and later contract work will be coordinated with the city—s water attorney and that the MOU helps Cash Special demonstrate to regulators that it has a plan for additional supply. Separately, staff said the TWDB invited the city to apply for drinking-water funding that could be zero percent interest or include principal forgiveness; the application deadline was reported as late August. Staff said the TWDB invitation to apply is not a guarantee of funding but that applying could reduce the project—s long-term financing costs if awarded. Council voted to authorize the MOU and to approve the resolution allowing the city manager or designee to pursue the TWDB application and related actions. No binding wholesale contract was signed Aug. 12; staff said detailed wholesale terms, rates and legal language will be worked through with the city attorney before any final agreement.