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Crockett council approves multi-part financing package to repair and expand water and wastewater systems
Summary
The City of Crockett approved ordinances and resolutions to accept a multi-part financing package — including a $3.1 million 0% loan and principal-forgiveness agreements — to rehabilitate aging wastewater infrastructure and expand plant capacity; council also approved asset-management funding and a rate-study plan.
Crockett’s City Council voted to approve a series of ordinances and resolutions authorizing a multi-part financing package to repair and expand the city’s water and wastewater systems.
City staff and finance advisers told the council the package funds rehabilitation of a wastewater treatment plant largely built in the 1970s, replacement of degraded collection infrastructure and capacity increases to accommodate growth. Ben Rosenberg, identified by staff as the city’s finance adviser, said the package includes both low-interest loans and a $3.1 million 0% interest loan. "The biggest loan, $3,000,000, is 0 interest," Rosenberg said.
Why it matters: Council members were told the plant currently treats a mixture of sewer and stormwater because of failing manholes and clay tile pipes, which reduces effective capacity. Staff described smoke testing, sewer-main and manhole repairs and clarifier replacements as priority work; the stated goal is to increase treatment capacity from 2,000,000 to 6,000,000 gallons per day to meet growth demands.
What was approved: The council approved related ordinances authorizing issuance of certificates of obligation (series 2024 A, B and C) and accepted associated principal forgiveness agreements through state revolving fund programs administered by the Texas Water Development Board. Council also approved a funding line of about $80,000 within the project budget for an asset-management system and directed staff to pursue a rate study using updated asset and water-district data.
Budget and repayment notes: Rosenberg presented preliminary debt-service schedules and said the city’s 2023 audited revenues from water sources were used for coverage calculations. He noted an interest payment of about $19,000 will fall due next August and said staff expects existing reserves and revenues to cover required debt service without general-tax increases. The transcript referenced a total project figure noted as "11.11," which was not fully specified in the record; Rosenberg separately identified a $3.1 million 0% loan and described several 30-year loan structures and a 10-year call feature.
Next steps: Staff will finalize paperwork and expect to draw funds within weeks; city officials said closing and funding should occur in mid-December. The city also agreed to bring back detailed bids, engineer recommendations and the proposed rate-study plan for future council consideration.
