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Bandera council approves $2.48 million TWDB grant and $280,000 certificates of obligation for water-line repairs
Summary
The City of Bandera approved an ordinance to issue $280,000 in certificates of obligation and a resolution to accept a $2,475,800 Texas Water Development Board grant and related principal-forgiveness financing for a water system improvement project.
Bandera City Council voted unanimously to issue $280,000 in certificates of obligation and to approve a grant agreement with the Texas Water Development Board funding $2,475,800 in principal forgiveness for water-system improvements.
The vote came May 1 after city staff described a project to replace about 3,000 linear feet of water lines, add a generator and two booster pumps at a city well, and develop an asset-management plan. The council approved Ordinance No. 452 to authorize the certificates of obligation and Resolution No. 2025-021 to accept the TWDB award.
City staff said the total project cost is about $2.7 million, of which $2,475,800 is principal forgiveness from the Texas Water Development Board and the remaining amount will be covered by a small loan in the form of certificates of obligation. Ben, a city staff member who presented the item, said the loan amount is $280,000 and carries an effective total interest cost of 2.99% over 20 years, producing roughly $20,000 in annual payments after the initial smaller interest payment of about $9,000 next year.
Debbie Breen, a council member, said the city had earlier opportunities to address infrastructure and that delaying action increased long‑term costs: "If we had done some of this 20 years ago when it was talked about, then we would be in a much better position today." The council discussed statewide funding trends and the limits on small cities' capacity to pay without state help.
Tony Battle moved to adopt Ordinance No. 452; Lynn Palmer seconded. The motion passed on a 5-0 vote. Brett Hicks moved to approve Resolution No. 2025-021; Jeff Flowers seconded. That motion also passed unanimously.
The council’s action approves financing and the grant agreement; construction and any future change orders or construction-phase approvals will be brought back to the council for further review and authorization.
