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Council directs staff to pursue $14.85M CO package for water tower, public works building and lift-station repairs
Summary
Staff proposed issuing a single certificate of obligation (~$14.85M) to fund a water tower, a new public works facility and Lucas Road lift-station renovation; council directed staff to proceed while staff seeks a potential TWDB grant for the tower.
Staff told council that three infrastructure projects — a new water tower, a public works facility and a Lucas Road lift-station renovation — could be bundled into a single certificate of obligation totaling about $14,850,000, offset in part by approximately $5,000,000 in prior strategic savings.
The staff package proposed ~$9,000,000 for a water tower, ~$5,000,000 for the public works facility and ~$850,000 for the lift-station overhaul, with contingencies and an option to reduce borrowing if the Texas Water Development Board (TWDB) grant (up to $10 million for the tower) is awarded. Staff said issuance steps would start with a notice of intent and could lead to funds delivery quickly, with the first debt payment not due until 2028.
Council discussed whether the lift-station cost should be borne by sewer customers served by that station and how to reflect the debt in future rate studies. After discussion of financing options (cash, revenue bonds, general obligation bonds, CO) and grant timing, council directed staff to proceed with a single CO and to bid the water tower using impact-fee cash for initial bid costs until financing or grant decisions are finalized.
