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Bandera council authorizes notice to seek $3 million interest-free planning loan for new sewer plant; applies for $2.7M TWDB water grant
Summary
The City of Bandera approved publication of intent to issue certificates of obligation to finance planning and design of a new sewer plant — a $4.4 million planning package with a $3 million interest‑free loan and $1.4 million grant — and authorized staff to apply to the Texas Water Development Board for a $2.7 million water‑system grant.
The City of Bandera on Sept. 24 authorized publication of a notice of intent to issue certificates of obligation to finance planning, acquisition and design work for a proposed new sewer plant and separately authorized submission of an application to the Texas Water Development Board for water‑system improvements.
Financial adviser Ben Rosenberg told the council the planning/design phase is a $4.4 million package of which $1.4 million is offered as grant funds and $3,000,000 would come as an interest‑free loan. "The $3,000,000 is [an] interest free loan," Rosenberg said, describing a split that would cover planning and design while construction would be addressed later through separate funding.
The council passed resolution 2024O30 to publish the required notices (a statutory step that begins a 45‑day and subsequent notice period for certificates of obligation) and adjusted the target issuance/closing date to Dec. 10, 2024. Rosenberg and staff said the certificate instrument gives the city flexibility to repay from tax revenue or water/sewer revenue; he reported the city’s pro forma shows sufficient coverage of the new debt without an immediate rate increase.
Council also voted to authorize filing an application with the Texas Water Development Board for a separate $2,700,000 water improvements package that staff described as a program offering roughly 90% grant forgiveness and a 10% local match. Staff cautioned the TWDB process takes months and that a final determination letter is typically issued in the spring; applications are due in October.
Why it matters: the measures start a multi‑step financing process for two major utility projects — planning for a relocated sewer plant and water‑system improvements — that city staff and the financial adviser said have been in development for years and will require coordinated grant applications and timed public notices to meet statutory deadlines.
What the council decided: council authorized publication of the city’s intent to issue certificates of obligation (resolution 2024O30), set a revised issuance date of Dec. 10, 2024, and approved a resolution (2024‑031) authorizing staff to submit the TWDB application and naming the mayor, city secretary and the financial adviser as authorized representatives. Council members voted in favor with no opposition reported in the meeting minutes.
Next steps: staff will publish the notice as required, monitor the 45‑day waiting period for the certificate issuance step, and submit the TWDB application in October. Staff indicated final determinations on both the certificate issuance and the TWDB application will return to council for further action once awards or approvals are confirmed.
