PRESENTER: Presenter
Jessica Coleman, NBU Finance and Risk Manager
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SUBJECT: Title
Discuss and consider the approval of a resolution requesting financial assistance from the Texas Water Development Board in an amount not to exceed $25,000,000 to provide costs related to the Lead Service Line Replacement Program and resolving other matters incident and related thereto.
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DEPARTMENT: NBU
BACKGROUND INFORMATION:
In May of 2023, NBU submitted a Project Information Form (“PIF”) to the Texas Water Development Board (“TWDB”) Drinking Water State Revolving Fund (“DWSRF”) for the Lead Service Line Replacement (LSLR) program.
Under the DWSRF, the TWDB provides low-cost financial assistance for planning, acquisition, design, and construction of water infrastructure. The Infrastructure Investment and Jobs Act (“IIJA”) appropriated funds through the DWSRF for LSLR projects and associated activities directly connected to the identification, planning, design, and replacement of lead service lines. The TWDB LSLR program funding includes a 51% forgivable loan and a 49% low-interest loan.
In September of 2024, NBU received an invitation to apply for financial assistance from the TWDB for the LSLR Program. The process to receive financial assistance under the DWSRF program consists of the submittal of an application for participation. The acceptance of the application by the TWDB is a commitment by the TWDB to provide financing for the eligible projects. No financial commitment is made by NBU during the application stage. NBU will seek additional NBU Board and City Council approval prior to the issuance of any bonds relating to this program.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
FISCAL IMPACT:
There is no direct impact to the City of New Braunfels from the application for TWDB funding described above.
Recommendation
RECOMMENDATION:
NBU’s staff recommends approval of the resolution.