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Jacksonville approves engineering contract and $11.6 million financing package for wastewater plant expansion
Summary
City council approved a contract with Stokes & Associates for engineering services and adopted related financing measures to expand the Double Creek Wastewater Treatment Plant. The $11.6M project includes about $8.15M in principal forgiveness from the Texas Water Development Board; estimated annual debt‑service will rise roughly $225,000.
Jacksonville city leaders voted to move forward with a planned expansion of the Double Creek Wastewater Treatment Plant and approved the financing needed to pay the city's share.
At the council's meeting, staff recommended engaging Stokes & Associates to provide preliminary and final design, environmental services, property‑acquisition support, and construction‑phase inspection for a project that will increase the plant's daily treatment capacity from about 2.9 million gallons to roughly 5.8 million. Council approved the engineering services contract as presented.
Council then adopted an ordinance authorizing issuance and sale of the City of Jacksonville's combination tax and surplus water and sewer system revenue certificates of obligation (Series 2024B) to fund the city portion of the work. City staff and the city's financial advisers and bond counsel outlined the terms: the combined funding package totals about $11,600,000; the Clean Water State Revolving Fund administered by the Texas Water Development Board (TWDB) will provide approximately $8,151,000 in principal forgiveness; the remaining debt will carry an estimated blended true interest cost near 2.31%.
John Martin of Hilltop Securities noted that the TWDB component substantially reduces the city's borrowing burden. Bond counsel Casey Byrd (Norton Rose Fulbright) answered legal questions on the closing and application process. Staff estimated the new debt will increase enterprise (water/sewer) debt‑service payments by roughly $225,000 per year, to about $1 million per year for water and sewer debt service.
Councilors asked procedural and timing questions; staff said the TWDB application work is underway and construction is preliminarily projected to conclude in mid‑2028. All measures were approved by voice vote.
The council also authorized related procurement steps and directed staff to proceed with required loan‑closing tasks and contract execution with the engineering firm.
Next steps: staff will finalize design agreements with Stokes & Associates, complete TWDB closing requirements, and return to council with procurement documents for the construction contract when bids are ready.
