Mineral Wells officials approve roughly $60 million in bonds to begin Turkey Peak Reservoir construction

The California County Municipal Water District No. 1 board and the City Council of Mineral Wells approved revenue bond measures on actions tied to the Turkey Peak Reservoir project, authorizing the district and city to issue debt to fund year‑one construction.

The water district board voted to authorize two series of revenue bonds: Series 2024A, a tax‑exempt issue with a principal amount described in the packet as $34,800,000, and Series 2024B, a taxable issue with a principal amount described as $25,200,000. Hilltop Securities presented terms during the meeting, with the tax‑exempt Series 2024A shown at an average borrowing cost of about 3.43% over a 30‑year amortization and the taxable Series 2024B indicated at about 4.42%.

District staff said proceeds from the first draw will pay for initial construction activities including dam construction, work on Ward Mountain Road and completing several utility relocations. Staff also noted the district holds a federal 404 permit for the project and that archaeological surveys and land acquisition work were completed during earlier phases.

According to staff, the Texas Water Development Board (TWDB) has agreed to multi‑year funding for Turkey Peak with a commitment up to $200,000,000 split across three tranches. District staff said the TWDB already sold the bonds that will fund the loan and that those proceeds are available; the district emphasized it will borrow only the amounts needed for near‑term work rather than the full commitment at once.

During the district discussion, Unidentified Speaker 5 asked for confirmation that the first draw covers dam construction, Ward Mountain Road and utility relocations; staff affirmed that and deferred technical specifics to project staff where appropriate. Laura Alexander of Hilltop Securities reviewed amortization schedules and noted the packet contains the final terms for both series.

The board moved and voted to approve the Series 2024A and Series 2024B resolutions. The transcript records 'aye' votes and that the motions 'pass' for the district; a roll‑call tally for the district vote was not recorded in the transcript.

Separately, the Mineral Wells City Council considered an ordinance to authorize the issuance and sale of bonds to support the Turkey Peak Reservoir construction and to authorize the mayor and city clerk to execute related documents. Council members confirmed that the amounts were included in recent rate studies and passed to rate consultants for inclusion in water‑rate recommendations. The council adopted the ordinance by voice vote, recorded in the transcript as 'Motion carries 5‑0.'

Officials said adopting the bonds also requires amending the original 1981 contract to extend its payment schedule to match the new bond terms; Bellhop prepared the updated payment schedule staff presented to the council. Staff said the updated payment schedule will obligate the city to payments through 2054 under the new amortization.

The meetings concluded with brief remarks noting the permitting and planning milestones that led to the current step. No public comments or substantive objections to the financing terms were recorded in the provided transcript.

The city ordinance records and the district resolutions will be used to close the financings and to proceed with the year‑one construction tasks identified by staff.