Rio Grande City approves financing steps to fund water-meter replacement, authorizes reimbursements

Rio Grande City commissioners voted July 14 to move forward on financing and procurement steps tied to a drinking-water project the city will seek from the Texas Water Development Board (TWDB). The commission approved publication of a notice of intent to issue certificates of obligation for TWDB project number 63011 and unanimously adopted a reimbursement resolution that allows the city to begin paying for meter replacement and other project expenses now and seek reimbursement once TWDB funding closes. City financial adviser Bobby Villarreal described the financing burden the utility will carry and the anticipated repayment size, saying the city will “have about $990,000 loan over the next 30 years” and that annual debt service will run roughly in the “$54,000–$59,000” range. City staff told commissioners the project is expected to be funded largely by grant dollars with the city covering the loan portion from utility revenues. Public utilities director Ruben Salinas Jr. and finance director Leo Cantu presented background showing a multi-step plan to replace aging meters, upgrade meter-reading software and improve revenue accuracy. Commissioners and staff said the work is intended to protect the utility’s revenues and reduce unaccounted-for water loss after earlier efforts reduced water loss from roughly 40 percent to about 9 percent. On the same agenda the commission voted to select Winstead PC as bond counsel and Estrada & Hossa (financial adviser) following the city’s scoring tabulation; both selections were approved unanimously. Council also approved a separate resolution declaring the city’s intent to reimburse certain project expenditures, which staff said allows purchasing and installation of meters before closing on TWDB funds. The actions taken set a timeline that staff and the city’s advisers said would allow the city to publish required notices, wait the statutory period, and then proceed to close financing with an anticipated available date in October if all steps proceed on schedule.