PRESENTER: Presenter
Jessica Williams, Chief Financial Officer (NBU)
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SUBJECT: Title
Discuss and consider approval of a Resolution Relating to the Principal Forgiveness Agreement with the Texas Water Development Board in the Amount of $510,000 and Resolving Other Matters Incident and Related Thereto.
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DEPARTMENT: NBU
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COUNCIL DISTRICTS IMPACTED: All
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 January 2025, the NBU Board, and on February 10, 2025, City Council approved a resolution authorizing the submittal of an application requesting financial assistance under the TWDB’s Drinking Water State Revolving Fund (DWSRF) Program for the Lead Service Line Replacement (LSLR) program.
In December 2025, NBU received a DWSRF loan commitment from the TWDB for $24.3 Million. The commitment includes an issuance for Inventory that has an expiration date of August 31, 2026, for $1M, whereby $510,000 is a principal forgiveness loan and $490,000 is a zero-interest loan. The second commitment includes an issuance for $23.3 Million that has an expiration date of August 31, 2027, whereby $11.4 Million is forgivable and $11.9 Million is a low interest loan. At this time, NBU staff is seeking approval for the inventory portion of the zero-interest loan amount of $490,000. The second commitment will be brought to the NBU Board and City Council prior to the expiration date of August 31, 2027.
The Board, on their April 30, 2026, Board Meeting, authorized the principal forgiveness agreement with the TWDB in the Amount of $510,000.
ISSUE:
The NBU Board of Trustees, on their April 30, 2026, Board Meeting, authorized NBU staff to proceed with the necessary steps for the principal forgiveness agreement with the TWDB.
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 agreement with the TWDB as described above
Recommendation
RECOMMENDATION:
NBU staff recommends approval of the ordinance.