Council hears multi-source plan and $290M estimate for Laredo secondary water source

Mayor Dr. Victor de Trevino opened discussion as the council received a presentation from David Earl, general counsel for Legacy Water Supply Corporation, on a proposed secondary water‑source project intended to provide Laredo and Webb County with an additional, sustainable supply.

Earl told the council the Legacy partnership has been in detailed talks with the Texas Water Development Board, the U.S. Army Corps of Engineers and prospective financing partners. He said the project is in active submission and review cycles and could move to acquisitions and construction later this year if funding aligns, but cautioned that timing depends on regulatory rule‑making and audit windows. "If things go according to schedule, we could have funding in place and actually move forward on acquisitions and construction later this year," Earl said (first presented by David Earl).

City and legacy staff described a phased capital estimate—Earl said phases 1–3 could total roughly $290 million, with early sub‑phases (acquisitions, pipelines, treatment) possibly financed by combinations of grants, low‑interest loans and quasi‑governmental lenders. Staff noted the project could qualify for voter‑approved water project grants and state revolving funds, but deadlines and audit completion for the city and county affect which funding round the project can enter. "We filed applications and went through technical review; one timing risk is that the city and county audits must be completed for certain submission packets," Earl said.

Utility staff and the city’s consultant described engineering and water‑quality issues that must be resolved before any construction contract is awarded. City technical staff said blending tests are underway to determine whether brackish well water (described at roughly 1,700 ppm in the presentation) can be combined with river or treated effluent (roughly 600 ppm) at acceptable dilution ratios. The utilities director noted reuse of treated wastewater (a proposal seeking an initial $25 million for lake‑level work) and other options are also being pursued as potentially lower‑cost emergency supplies.

Council members pressed staff on affordability and timing; staff said that while some grant funding is available, borrowing would likely be necessary for major components and could lead to rate increases unless a larger share of project costs is covered by grant funding. Staff cited examples from other Texas cities where major water projects have led to multi‑decade rate impacts and urged a grant‑first strategy where feasible.

The mayor and council did not take a final vote on project authorization at the meeting but directed staff to continue technical testing, refine cost estimates, and prioritize grant applications. Council members asked for regular updates and a clear list of funding contingencies and timelines that would trigger construction procurement.