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Bonham council denies $4.335M bond issuance, opts to seek TWDB co-funding for $14.4M water improvements
Summary
Council voted unanimously to deny an ordinance authorizing $4.335 million in Certificates of Obligation and instead authorized staff to apply to the Texas Water Development Board for potential co-funding of roughly $14.4 million in water system improvements.
The Bonham City Council on June 8 unanimously denied an ordinance that would have authorized $4,335,000 in Combination Tax and Surplus Revenue Certificates of Obligation to fund the city’s local share of planned water system improvements.
City staff told the council the overall water project is eligible for about $14.4 million in assistance through the Water Loan Assistance Fund (WLAF). Sarah Osburn, the city’s director of administrative services, said conversations with Texas Water Development Board staff indicated an opportunity to co-fund the city’s local share through the State Drinking Water State Revolving Fund (DWSRF) program. City staff, the financial advisor and bond counsel reviewed that option and recommended pursuing the TWDB co-funding instead of moving forward with the certificates issuance at this time.
On a motion by Council Member Ernie Quintana, seconded by Kevin Hayes, the council voted 7-0 to deny the certificates ordinance. Immediately afterward, the council adopted a resolution authorizing staff to submit an application for financial assistance to the Texas Water Development Board so the city can pursue potential DWSRF co-funding and, if needed, return later to reinitiate bond proceedings.
City Manager Sean Pate and Osburn said the city has requested an extension of the WLAF program closing deadline (currently Aug. 31, 2026) while it pursues the TWDB option. Osburn said that if the extension is denied or the DWSRF co-funding does not proceed, staff will return to council with the necessary steps to restart the certificates issuance and keep the project on schedule.
The actions leave the project’s financing plan flexible: council declined the immediate issuance of local debt but authorized pursuit of state co-funding that could reduce or replace the city’s planned borrowing.
What happens next: staff will submit the TWDB application and continue coordination with bond counsel and the city’s financial advisor; if co-funding does not materialize, council will consider reauthorizing local certificates or alternative financing later in the summer.
