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Greenville staff outline $245M–$265M water and sewer bond package to finance new plants, reservoir and transmission main
Summary
City staff presented a multi‑year plan to issue water and sewer revenue bonds to build a new water treatment plant, expand wastewater capacity, install a transmission main and possibly add Reservoir No. 7; financing scenarios include a $52.6M first issuance and use of TWDB loans to lower interest costs.
City staff on Monday presented detailed proposals for a multi‑year water and sewer bond program that would fund a new 12‑million‑gallon water treatment plant, a wastewater expansion and major transmission and storage projects.
"The 1st debt issuance that we have planned is for projects of $52,610,000," said Stephen Adams of Specialized Public Finance as he outlined a three‑year debt plan that could include $20 million for a public works service center in the first issuance and an optional $70 million Reservoir No. 7 in a later issue. Adams said the city has obtained a $90 million Texas Water Development Board loan and that additive financing of roughly $40 million would bring projected plant funding near $130 million to allow for conservative budgeting ahead of bids.
The staff presentation included specific project estimates and sequencing. City staff (Summer) briefed the council on near‑term needs including replacing a structurally compromised 2.5‑million‑gallon tank, a proposed wet dredge of the sludge pond (estimated about $3 million), rehabilitation of older basins (roughly $30 million) and a planned 36‑inch raw water loop (about 6.99 miles; estimated 24 months construction).
Summer said the scope is driven by capacity constraints: "Our current plant is only rated at 14 MGD," she said, noting around 14,000 meters on the system and ongoing growth that has pushed operations near capacity. Work on the new plant and associated transmission and storage projects is tied to TCEQ and TWDB approvals; staff cited a tentative completion target for the water plant in 2028 if permitting and funding proceed on schedule.
Adams ran debt‑service scenarios showing a higher debt‑service peak in a full‑build option and emphasized the financial tradeoffs of acting now versus delaying construction. He said TWDB or similar subsidized debt would likely reduce interest costs compared with full market sales. The council heard a reimbursement‑resolution rationale (needed to reimburse pre‑issuance expenditures) and later approved that resolution as a separate item.
Looking ahead, staff recommended updating the NewGen rate study to reflect the expanded capital plan and to provide the revenue projection needed for additional bonds testing and market sales. The council did not commit to all options in the presentation but approved the process steps to move bonds toward sale.
