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Cleburne council OKs $2.32M revenue bond package tied to TWDB grant program
Summary
Council approved documents to issue City of Cleburne Water Works and Sewer System Revenue Bonds (Series 2026) as part of a $4.7M project package with substantial TWDB grant or loan forgiveness; advisor said the structure yields effectively zero interest over a 10‑year amortization and significant savings.
City financial staff and a bond advisor briefed the council on a Texas Water Development Board (TWDB) financing package for water system projects and the council approved the ordinance needed to move the financing toward closing.
The advisor described a $4.7 million project package that pairs a grant/loan package with a $2.32 million subsidized revenue bond; he said approximately 51% of the $4.7 million will be grant/loan forgiveness and about 49% will be structured as a subsidized revenue bond. “We will be issuing a revenue bond of 2,300,000 but we'll pay no interest on it,” the advisor said, explaining the TWDB subsidy and a 10‑year level principal amortization. Staff told council the projects (including a lead service line initiative referenced elsewhere on the agenda) will be escrowed for the indicated projects and that closing is anticipated after Attorney General approval.
Council approved the ordinance and directed staff and bond counsel to proceed with the required legal filings and closing steps. Staff said the city’s utility fund was healthy and would cover the debt service under the proposed structure.
