Council shifts several water, sewer and street projects after legal review of raw‑water financing

Copperas Cove councilmembers approved staff recommendations Tuesday to revise the city’s long‑range debt schedule after bond counsel and outside attorneys flagged legal limits on using certain debt to purchase raw water.

Ariana Beckman, director of budget, began the discussion about proposed changes to the FY2025 capital‑outlay and debt plan and said the changes primarily affect water and sewer, solid waste and street maintenance projects. Beckman said the packet originally included a raw‑water purchase financed with certificates of obligation (COs), but legal counsel advised the city that ‘‘we cannot issue debt to purchase raw water’’ the way it was presented.

City Manager Ryan Havelock and staff told council they had held a detailed legal call with multiple attorneys and engaged additional counsel with water‑rights experience to evaluate alternative structures. Havelock said staff will continue talks with the water rights owner and Bell County WCID No. 1 and that further structuring would be necessary before any financing could proceed.

Because the raw‑water purchase could not be moved forward under the CO structure in time, staff recommended returning the Killeen Cove 20‑inch transmission line relocation (phase 2) to the 2025 CO schedule; council agreed. Other schedule and budget changes discussed in the workshop packet included moving the Mountain Top central pressure zone improvement from 2026 to 2029 (about $808,000), shifting Casa Drive / Georgetown Road / Highway 190 water main improvements from 2025 to 2026 (about $827,000), and increasing the clarifier rehabilitation budget at the Northwest Wastewater Treatment Plant to $3.9 million (an increase of $1.6 million over the prior number).

Beckman said some solid‑waste capital items could be paid from contingency or savings from prior issuances and that the Bradford Oaks subdivision roadway reconstruction would be shifted one year under the proposed street‑maintenance timeline change, timed to the transportation utility fee implementation.

Staff and the council discussed next steps with bond counsel and the timing for a notice of intent and issuance. Beckman said staff would begin detailed discussions with bond counsel and bring a notice of intent back to council at a June meeting; the recommended Certificates of Obligation issuance would follow the council calendar in August.

Council members asked for continued legal review and careful structuring before any raw‑water financing is proposed. After discussion, council members agreed to the changes and to direct staff to proceed with the revised debt schedule and the next steps with bond counsel.