Del Rio officials outline $22 million wastewater financing gap, urge options to move projects forward

City staff told the Del Rio City Council on Feb. 24 that final designs for the Silverlake Wastewater Treatment Plant improvements and the Northside Sanitary Sewer trunkline are complete but the city still needs tens of millions of dollars to finish construction.

Assistant Finance Director Roxy Soto said approved funding and current expenditures were summarized for the council and that the Oxidation Ditch No. 1 project requires an additional $2,857,189. She said the wastewater projects collectively require an additional $22,062,437. City Manager Shawna D. Burkhart added that the North Bedell water tower and its associated water line are about $2.2 million short; she suggested that, if funding from the Texas Water Development Board does not materialize, the city consider packaging the water and wastewater projects together for financing.

Soto recommended the issuance of Certificates of Obligation as one available financing option, but noted that no formal action was required at this meeting and that further discussion will return to council at a future date. The council did not vote on financing at this meeting.

Why it matters: the wastewater and water-line projects are capital improvements required to maintain system capacity and meet regulatory/operational needs. The figures presented on Feb. 24 establish the scale of the immediate financing decision facing the city and will affect future budget planning and potential debt issuance.

Next steps: staff said they will continue to refine funding proposals and bring financing options back to the council for consideration, including potential Certificates of Obligation and project packaging that could alter timing and payback structures.