Alamo commission OKs notice to issue Certificates of Obligation for water-plant overhaul

The City of Alamo Board of Commissioners voted March 17 to publish notice of intent to issue Certificates of Obligation (Series 2026) to fund design, acquisition and rehabilitation work at the city’s approximately 20‑year‑old water treatment plant.

Staff described the project as a near‑complete rehabilitation — including filters, clarifiers and the SCADA control system — that would cost about $9,700,000 in total. "Everything was gonna come out to a total of $9,700,000," a staff member said during the presentation, and staff told the commission that participation in a Texas Water Development Board financing package would reduce the city’s net obligation to about $2,800,000 after forgiveness and discounts.

Commissioners asked about cost‑overrun risk and the scope of forgiveness under the board’s package. A commissioner noted that staff and the city’s financial adviser had explained that the board’s assistance includes a significant forgiveness element; staff subsequently stated the forgiveness amount at about $6,400,000, which is the principal driver of the reduced local obligation. The commission voted to approve the resolution to publish the notice and proceed with bond counsel and the financial adviser to finalize documents; approval was by voice vote with no opposing voice recorded.

Why it matters: The work would replace or rehabilitate core treatment components and modernize plant controls, which officials said have not been comprehensively updated in about two decades. Staff said the project moves forward to secure financing terms through the Texas Water Development Board and to bring final contracts back to the commission for approval.

Next steps: Bond counsel and the financial adviser will continue work on the financing package; staff will return to the commission with final contract documents and any updated cost estimates before construction begins.