Athens council approves $8 million water and sewer bond package, citing $1.6M–$1.7M savings

The Athens City Council on Monday approved an ordinance authorizing issuance of the City of Athens Waterworks and Sewer System Revenue Bonds, Series 2026, to finance improvements at the city wastewater treatment facilities and related projects.

Hilltop Securities representative Marti Shew told the council the city intends to use the Texas Water Development Board for subsidized financing. The final true interest cost was stated as 2.5 percent, which Shew said yields about $1.6 million to $1.7 million in savings on roughly $8 million in principal compared with alternate financing scenarios. The debt will be amortized over 20 years with equal annual payments, and issuance costs were reported at about $233,000.

City Manager Elizabeth Borstad outlined the projects planned for inclusion in the bond issuance: purchase of sludge dewatering equipment; electrical improvements and an administrative building at the West wastewater treatment plant; and a TPES permit amendment. Borstad said the city originally applied for $18,060,000 but scaled the request after review of its disadvantaged community status and will pursue supplemental applications separately.

Finance Director Sarah Smith also requested the council establish two TexPool taxable accounts for the Series 2026 bonds: a restricted Debt Service Reserve Account required for issuance and a Capital Project Account to track project expenditures; council approved the accounts in a separate resolution.

The ordinance was read aloud by City Secretary Bonnie Hambrick and approved on a 5–0 roll call vote (Mayor Aaron Smith; Councilmembers SyTanna Freeman, Katha Lawyer, Bill Priestley and Bryan Barker voted aye). The council also authorized formation of the debt-service and capital accounts tied to the issuance.

Next steps include completing closing paperwork with the Texas Water Development Board and moving forward with procurement and contracting for the listed projects.