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Commission approves 0% waterworks and sewer revenue bonds to support lead pipe replacement
Summary
The commission authorized issuance of waterworks and sewer revenue bonds through a Texas Water Development Board program with a 0% interest rate and an included grant to replace lead pipes.
The Harlingen City Commission approved an ordinance on first reading authorizing the issuance of Waterworks and Sewer System revenue bonds, Series 2025, to fund water system improvements including lead service line replacements. Roy Rodriguez, interim general manager of Harlingen Waterworks, told commissioners the financing uses a Texas Water Development Board program that provides 0 percent interest loans for lead pipe replacement and includes a direct grant of $1.5 million (half of $1.5 million described by staff).
Rodriguez said the program’s favorable terms — a 0% loan plus grant funds — are intended to support statewide replacement of lead pipes and that Harlingen will pledge waterworks and sewer revenues to secure repayment. Commissioners asked about costs and maturities; the interim manager said the program structure, administered by the state board, yields the 0% rate as part of the funding package. The commission then voted to approve the ordinance on first reading.
Staff will return with final bond documents, paying‑agent and escrow agreements and implementation details required for closing. The project is part of a broader state initiative to replace lead service lines and modernize water infrastructure.
