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Duncanville council approves $11.05 million certificates to fund automated meter program
Summary
Council authorized the sale of certificates of obligation to finance an automated meter infrastructure project, approving issuance of $11,050,000 at a fixed rate of 3.78%. City officials said the program aims to reduce unmetered water loss and provide customer meter‑monitoring tools without raising water rates.
Duncanville city leaders on May 5 authorized the sale of certificates of obligation to finance an automated meter infrastructure program intended to modernize water meters and the city’s meter‑reading system.
Jason Hughes, senior managing director at Hilltop Securities, told council the bonds were sold that day and carried a fixed interest rate of 3.78%. "3.78% is the rate that is fixed for the life of the certificates," Hughes said during the presentation, and the financing request presented to council was $11,050,000. CFO Richard Jackson said the city expects to receive proceeds in roughly 30 days and begin contracting for equipment and installation thereafter.
City staff said the planned system would replace aging meters, improve meter accuracy and reduce lost revenue caused by undetected leaks and meter inaccuracy. Officials cited an earlier investment‑grade audit that estimated average meter accuracy at about 80% and said the new system should approach near‑complete accuracy and include a customer app for real‑time usage monitoring. "This takes us to what accuracy, 99% to 100," Jackson said when summarizing the investment case and projected revenue recovery.
Leaders emphasized the financing is structured so utility revenues — not property tax increases — will be used for debt service. Jackson told the council the project’s additional revenue and expenditure reductions were modeled to cover debt service and that the plan did not require a water‑rate increase.
Council members asked about timeline and payback. Staff said implementation and software integration would be phased, with full implementation estimated in approximately 14–15 months from the start of construction. The council voted to approve the ordinance authorizing the certificates.
Next steps include finalizing procurement and vendor contracts, coordinating meter replacement schedules with residents and rolling out customer‑facing tools, with staff returning to council for any contracts or purchases above the council’s established thresholds.
