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Granbury council approves application to seek $18 million from Texas State Infrastructure Bank
Summary
The Granbury City Council voted to file a State Infrastructure Bank application to finance utility relocation for a March breakout project, authorizing the city manager to act on the application; staff estimated an $18 million request with extra contingency and said the loan rate would be about 10 basis points above the MMA rate at filing.
The Granbury City Council voted to adopt Resolution No. 2506 on Feb. 18, authorizing the city to file an application for financial assistance from the Texas State Infrastructure Bank (SIB) and empowering the city manager to act on the application.
City Manager Caulkin told the council the SIB application would be used to finance relocation of utilities for a “March breakout” project and that staff had prepared a partially completed application. He said the city planned to request about $18,000,000 “all in,” including added contingency, and that the bank representative advised asking for more contingency than originally budgeted. “They will be loaning us, the money at 10 basis points above the MMA number,” Caulkin said, referring to the rate at the time of filing. He also said the program’s state funds avoid many federal requirements that accompany federal funding, which can reduce project premium costs.
The council asked about the city’s prior use of similar programs; Councilmember Kaufman noted the city had used Texas Water Development Board loans in the past but said he had not used SIB before. Caulkin said he was not aware of prior SIB use by the city. Staff said the relocation will include electric distribution line moves but that the city did not yet have a probable cost opinion for those relocations. Caulkin also described how reimbursement would likely work: the city would submit contractor bills and be reimbursed on a draw/reimbursement basis, though he said he was not certain of procedural details.
Staff identified Hilltop Securities and city financial advisor John Martin as participants in outreach about the program and said Hilltop connected them with SIB contacts. Caulkin told the council the SIB contact encouraged adding contingency to avoid returning for additional borrowing if costs exceed initial estimates. The packet material listed a partially completed application and staff recommendation to submit it.
Councilmember Barry moved to adopt Resolution No. 2506 and the motion passed on a voice vote recorded as 6–0.
The council convened for an executive (closed) session later in the meeting and reported no action taken in closed session.
