Get AI Briefings, Transcripts & Alerts on Local & National Government Meetings — Forever.
Del Rio council approves financing package and principal-forgiveness agreement for water upgrades
Summary
The Del Rio City Council unanimously approved a principal-forgiveness agreement for a lead service line replacement program and three ordinances authorizing certificates of obligation totaling $17,858,580 to fund water system improvements, with one ordinance amended to set the final amount at $17,003,580.
The Del Rio City Council on Jan. 13 unanimously approved a resolution and three ordinances to finance water system improvements, including a principal-forgiveness agreement for a lead service line replacement program and certificates of obligation sold to state entities.
Tony Jaso, bond counsel, provided a brief but detailed presentation on the city’s general obligation debt profile before the council voted on the bond measures. Councilman J. P. Sanchez moved approval of two of the ordinances and led the motion to approve the largest issuance; Councilman James DeReus and Councilman Jesus Lopez Jr. seconded other measures. Each motion passed with all council members voting aye.
The measures passed were: Resolution R:2026-001 approving the execution and delivery of a principal forgiveness agreement to support a Lead Service Line Replacement Program; Ordinance O:2026-001 authorizing the issuance and sale of $590,000 in Combination Tax and Surplus Revenue Certificates of Obligation, Taxable Series 2026A, to the Texas Water Development Board to fund water system improvements; Ordinance O:2026-002 authorizing approximately $265,000 in Combination Tax and Surplus Revenue Certificates of Obligation, Series 2026B, to the Texas Water Development Board; and Ordinance O:2026-003 authorizing approximately $17,005,000 in Combination Tax and Revenue Certificates of Obligation, Series 2026, to the Texas Military Preparedness Commission, which the council amended on the floor to set the amount at $17,003,580.
Combined, the three certificates of obligation authorized total $17,858,580. The transcript records each motion and an unanimous vote by Mayor Alvaro Arreola and council members James DeReus, J. P. Sanchez, Ernestina Martinez, Jesus Lopez Jr., Randy Quinones and Carmen Gutierrez.
The resolutions and ordinances direct issuance and sale of the certificates to state entities (the Texas Water Development Board and the Texas Military Preparedness Commission) and levy ad valorem taxes for their payment as described in the ordinances. The meeting record does not specify further implementation steps, repayment schedules, specific project scopes beyond “water system improvement projects,” or the dollar amount tied specifically to the lead service line forgiveness agreement.
With no further business, Mayor Arreola adjourned the meeting at 6:34 p.m.