Council approves $59 million loan pledge, multiple zoning and finance changes; denies utility rate request

Council members on October (meeting date recorded as October 2025 in the record) approved a series of funding, land‑use and policy actions, including authorizing the pledge of utility and tax revenues to secure a $59,000,000 Texas Water Development Board (TWDB) drinking water state revolving fund loan and beginning the certificates of obligation issuance process to facilitate project funding.

The pledge authorization passed unanimously, 7–0. The council also approved several plats and local ordinances and adopted new finance and revenue‑management policies. Separately, the council adopted a resolution opposing a rate increase filed by Encore Electric Delivery Company LLC and directed staff to file the city’s position with the applicable parties.

Why it matters: The council’s action on the TWDB loan clears a financing path for a major drinking‑water project and moves forward debt issuance that will fund capital work. The finance and reserve policies set citywide rules for revenue management and fund balance that affect budgeting and long‑term fiscal planning.

Key actions, outcomes and brief explanations

- Pledge and loan initiation (Item 19): The council authorized pledging water, sewer and ad valorem tax revenues as security for repayment of a $59,000,000 TWDB drinking water state revolving fund loan and authorized staff to initiate the issuance process for certificates of obligation to facilitate project funding. The motion carried 7–0. During discussion council members asked about current cost estimates and were told staff and the mayor pro tem had considered utility rates and the budget; staff said no additional water rate increase would be needed for this phase of the reverse‑osmosis project. (Transcript excerpt: item text announcing action and council motion.)

- Replat to remove easement (Item 20): The council held a public hearing and approved a replat of Lots 1–18 (recorded in…