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GBRA study funded; municipalities shown 40-year financing as program cost looms
Summary
GBRA told Calhoun County officials it authorized a $3 million reserve release to study the project and is modeling municipal participants on 40-year financing; GBRA cited a consultant estimate of roughly $6 billion for the full program and said it will seek TWDB SWIFT financing where possible.
GBRA told commissioners the board authorized $3,000,000 from reserves to fund an engineering and program study. Charlie said the study will refine project scope, costs and participant obligations ahead of any construction decision.
On financing, Charlie said "Most of the municipal type entities that we're working with are interested in 40 year financing period" and noted legislation allows market instruments up to 50 years. He also said GBRA intends to leverage the Texas Water Development Board SWIFT program where possible but cautioned that the SWIFT program is underfunded for statewide needs.
Commissioners pressed about debt impacts for small towns; GBRA said the contracts would allocate debt pro rata and that municipalities should expect debt service to ramp over decades as projects come online. GBRA said further financial modeling and potential SWIFT applications are part of the study.
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