Leander approves SWIFT loan application for Brushy Creek Regional Utility Authority phase 2A

Leander City Council on March 20 approved a resolution authorizing the Brushy Creek Regional Utility Authority to submit a final SWIFT loan application for the regional water-treatment Phase 2A project.

The board expects to receive an invitation to submit the full application in April; the final loan closing would follow later in the year if approved. SWIFT is the State Water Implementation Fund for Texas, administered by the Texas Water Development Board; it offers low-interest loans for water infrastructure.

Why it matters: Phase 2A is part of a multi-phase regional water treatment program shared among member cities. The project expands treatment capacity and complements Leander’s deepwater intake work; financing through SWIFT would reduce borrowing costs compared with some open-market alternatives.

Project and financing details: Staff reported the Phase 2A estimated cost at about $138,000,000 and that Leander’s obligation would be approximately 52.4 percent, or roughly $72,000,000. The estimated cost includes construction, engineering phases, testing and a 25 percent contingency to cover unknowns at current design stage. Officials said the project would add nearly 12 million gallons per day of treatment capacity for Leander when built.

City manager commentary: City management and finance advisors said SWIFT offered a substantially less expensive financing option compared with open-market sale or private placement, supporting the request to pursue the SWIFT loan path.

Council action: The motion to approve the SWIFT application filing resolution passed unanimously.

Implementation: The BCRUA will proceed with the final application if invited; the city will follow the loan timetable and the authority’s construction schedule. Staff said the final application would be due about 30 days after receiving the invitation, and loans would likely close in the fall if approved.