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Weslaco authorizes staff to apply for $33M TWDB loan/grant to support South wastewater plant
Summary
The commission authorized the assistant city manager to prepare and submit a Texas Water Development Board application for up to $33 million in loan/grant assistance for wastewater work, and approved using current financial advisor and bond counsel to meet a December 4 filing deadline; staff estimated professional fees under $100,000 and said bond proceeds may not reimburse the upfront costs because procurement was not recently completed.
Weslaco city staff told the City Commission on Oct. 21 they had received an invitation to apply to the Texas Water Development Board (TWDB) for up to $33 million in Clean Water State Revolving Fund assistance — a mix of low‑interest financing and possible grant/forgiveness — to support improvements at the South Wastewater Treatment Plant.
Because the TWDB application requires proof of qualified professional services (financial advisor and bond counsel) and the application deadline of Dec. 4 did not allow time for a standard RFQ procurement, staff asked the commission to authorize the assistant city manager to coordinate with the city's existing financial advisor (Hilltop Securities) and bond counsel (Winstead) to assemble the application. Staff estimated combined fees for those services would likely be less than $100,000 out of pocket.
Miss Rosie (staff) said the application could include about $10 million in principal forgiveness/grant and a $23 million low‑interest loan component but cautioned that, because procurement for the advisor/counsel had not been completed recently, the bond proceeds would not be eligible to reimburse those upfront professional costs. Commissioners asked clarifying questions about reimbursement risk and procurement requirements.
Why it matters: TWDB funding could provide large-scale financial support for wastewater infrastructure improvements in Weslaco. Staff argued applying now was prudent despite the need to pay some professional fees up front so the city would not forfeit the funding opportunity.
What happens next: commission approved staff to proceed with the TWDB application using existing advisor and counsel; staff also received authorization to solicit RFQs for future procurements of financial advisor and bond counsel to align with procurement policy.
Provenance: Staff presentation and commission actions are recorded from SEG 1535 through SEG 1655.
