Cleveland council approves $10M clean‑water grant package and related certificates and loans

City council on April 21 approved a three‑part financing package tied to a Texas Water Development Board (TWDB) award that will fund a major water infrastructure project.

Financial adviser Joe Marorrow of Hilltop Securities told the council the TWDB funding for project #73989 included roughly $10 million in loan forgiveness (a grant component), $3,155,000 in 0% certificates of obligation repayable over 20 years, and an additional low‑interest loan subject to a fixed rate and 20‑year amortization. Bond counsel Jonathan Fels (Bracewell) and staff walked council through the debt‑service schedules and the expected start of repayment in March 2027.

"This gives us a very favorable financing outcome for the project," Marorrow said, explaining the split between the forgivable grant, the 0% certificates and the low‑interest loan.

Council members asked whether the low rate is fixed (it is) and discussed the next steps: state reviews and closing documents through the attorney general and comptroller's offices. Council approved three separate agenda items — the taxable certificates of obligation (series 2026A), the combination tax and surplus revenue certificates (series 2026B), and the loan‑forgiveness/grant item — by unanimous votes.

The council also approved a related Westwood work order for project engineering and several fee and administrative items connected to grants in the consent and regular agenda.

The financing package will support the city's water supply and clean‑water infrastructure work; staff said the city expects to close the TWDB components within about 30 days pending state processing.