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Kyle approves delegation for regional water financing after capping max rate at 3.99%
Summary
Council authorized the city's participation in Alliance Regional Water Authority financing for an expanded water-treatment program and delegated final pricing authority after amending a maximum interest-rate cap to 3.99%; Kyle's share of the requested SWIFT funding was presented as $38.875 million.
Council members on Oct. 15 voted to authorize the Alliance Regional Water Authority (ARWA) to issue contract revenue bonds for a regional water-treatment expansion and to delegate final pricing authority to the mayor, city manager and staff, with a council-imposed cap on the maximum interest rate.
Grama Moore, executive director of ARWA, outlined a two-part financing request: refinance a bond anticipation note (Kyle share just under $13 million) and fund a 1c/1d expansion of the Wyer (Warachima/Wire?) treatment plant and associated raw-water infrastructure. ARWA sought state SWIFT funding aggregated at roughly $138 million across sponsors, with Kyle—s share at $38,875,000.
Moore said preliminary pricing indicated a likely interest rate near 3.48% and that the financing would lower the city—s projected interest burden versus the open market. Council members raised concerns about delegating pricing without the final rate published; in response the mayor moved to amend the delegation to set a maximum final interest rate equal to or below 3.99%. The amendment passed unanimously, and the underlying delegation and resolution were approved 7–0.
Moore said the ARWA board expects to finalize rates at its October meeting and close financing by Dec. 2. Kyle staff will receive the final pricing and execute documents within the council-approved rate cap.
Why it matters: the financing enables a sizeable water-treatment expansion—additional wells, booster-pump storage and plant upgrades—intended to more than double system capacity for Kyle. Council also secured a capped authorization to avoid calling a special meeting for final pricing.
