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Council approves $15.9 million for backup generators at Abilene water plants, staff to pursue grants
Summary
Council approved funding for generators and resiliency upgrades at water treatment facilities, with staff to pursue state and federal grants to reduce the debt the utility must carry.
Abilene City Council approved Item 10 to add backup electric generators and other resiliency improvements to the city’s water treatment plants, authorizing work estimated in packet materials at approximately $15,860,719.
Council members discussed whether portions of the project could be funded by state or federal resiliency grants before issuing utility debt. Staff said roughly $13 million of the request is for generators and that the work will be repaid through water utility rates and not property taxes. The city will pursue available state and federal grants; staff said awards could reduce the amount of debt ultimately issued and that grant timelines vary.
Leslie Andrews and other staff answered council questions about timing and eligibility. Staff indicated federal grants can take longer to award and that state funding rounds may prioritize larger jurisdictions; they advised the council that the earliest debt issuance for the project would likely be about 90 days after approval to accommodate required notices and comment periods.
The council approved the item by voice vote (all yeses). Staff will continue seeking grants and will return with final financing amounts and timing before issuing certificates of obligation.
Ending: Staff will apply for grant funds and return with updated estimated debt obligations and timelines before issuing any debt.
