Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Water Infrastructure topic
No spam. Unsubscribe anytime.
Liberty Hill council approves notice to seek $18.55 million in certificates to fund advanced water purification plant
Summary
Council voted to publish notice of intent to issue up to $18,550,000 in combination tax and revenue certificates of obligation to help finance the Advanced Water Purification Facility (AWPF); the city expects $10 million of the TWDB award to be forgivable, with the remaining financing repaid from utility revenues.
Liberty Hill — The City Council on Tuesday voted unanimously to publish a notice of intent to issue up to $18,550,000 in combination tax and revenue certificates of obligation to help finance the city’s Advanced Water Purification Facility, a multi‑year project scheduled to begin construction in 02/2027 and complete by 2030 if all goes to plan.
Dan Wegmiller of Specialized Public Finance, who presented the financing plan, said the project was awarded a package from the Texas Water Development Board worth $28,550,000, including what he described as a "forgivable loan" of $10,000,000. "So 10,000,000 is what's called a forgivable loan, which is pretty much like a grant," Wegmiller said. The city's financing strategy anticipates repaying the certificates primarily from water and sewer revenues rather than the property tax levy.
City bond counsel Julia Houston joined the presentation and outlined the procedural steps: council authorization to publish notice, public posting requirements, setting interest rates in September, and formal funding in October if the timeline holds. Wegmiller said staff and advisors sought the certificates of obligation structure to secure lower interest costs while preserving the tax pledge as additional security.
Mayor and council members pressed staff on whether rate adjustments already approved by council would produce sufficient revenue to service the debt. City staff and the financial adviser said the council‑approved rates go into effect next month and were built into the capacity analysis. Wegmiller noted the Water Development Board had granted prior extensions and that this was likely the final extension for closing.
Council adopted Resolution 2025‑R‑037 to authorize publication and posting of the notice of intent to issue the certificates of obligation. The motion passed on a 6–0 vote.
Next steps: staff will publish the notice, return in September with actual interest rates and estimated debt service, and — subject to those numbers and the Water Development Board timetable — proceed to funding in mid‑October.
