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Denton Council authorizes $60M TWDB loan application for Pecan Creek plant reconstruction
Summary
Council approved a resolution authorizing staff to submit an application to the Texas Water Development Board for up to $60 million from the Clean Water State Revolving Fund to help finance the Pecan Creek Water Reclamation Plant reconstruction; staff will pair CWSRF with WIFIA to lower borrowing costs.
The City of Denton authorized staff to submit a $60 million application to the Texas Water Development Board's Clean Water State Revolving Fund as part of a larger reconstruction and capacity expansion of the Pecan Creek Water Reclamation Plant.
Kyle Pedego, planning and engineering division manager for Water Utilities (speaker 29), said the overall reconstruction is estimated at roughly $500 million and that TWDB listed an eligible cost of about $326 million; Denton was invited to apply for $60 million in the FY26 allocation. He said staff plans to combine CWSRF funds with a WIFIA application (the city has already submitted a WIFIA application), using CWSRF as the city's match to maximize low‑cost financing and extend repayment terms up to 30 years.
"This allows municipalities to fund critical upgrades to infrastructure at a lower cost than traditional bond funding," Pedego said. Staff plans to submit the completed CWSRF application by the Dec. 4 deadline; TWDB decisions are expected between January and March with loan closings later in 2026. Council approved the resolution 7–0, which authorizes filing the application and designating city officials to execute application documents. Staff stressed that award of funds is not guaranteed and that final loan terms will be presented to council for acceptance if and when an offer is made.
