PRESENTER: Presenter
Jessica Williams, Chief Financial Officer (NBU)
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SUBJECT: Title
Discuss and consider approval of a Resolution Authorizing an Application to the Texas Water Development Board’s Water Supply and Infrastructure Grant Program 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 2025, House Bill 500 (“HB 500”) passed during the 89th Texas Legislative Session and includes $1.03 billion appropriation from the general fund to the Texas Water Development Board (“TWDB”) for water supply and infrastructure grants. This funding is 100% grant funding with no loans or leveraging and is limited to governmental or political subdivisions with public water systems. Projects must align with water supply or water infrastructure strategies and recommendations identified in the 2027 State Water Plan. Project phase eligibility for populations of 150,000 or less can include planning, acquisition, design, or construction.
The application deadline will be July 31, 2026, with commitments and closings to escrow completed by May 1, 2027. The Scoring criteria determined by the TWDB will use the Service Area’s Annual Median Household Income (“AMHI”) compared to the State AMHI to rank project submissions. Extra points are given for projects that are deemed ready to proceed and a tiebreaker preference is given to entities that have not recently received financial assistance from the TWDB.
NBU staff have identified Water Tank Rehabilitation Phase 2 as the proposed project for submission under HB500. This project includes rehabilitation and maintenance of the elevated water storage tanks located at 223 Mission Valley Road (Newks Elevated Storage Tank) and 608 Kerlick Lane (Kerlick Elevated Storage Tank). The scope includes interior and exterior coating rehabilitation, structural repairs, replacement of appurtenances, and upgrades to tank instrumentation and heat tracing systems. The project cost is approximately $5.3 million and is considered shovel-ready, with design, permitting, and pre-construction activities substantially complete.
The Board, on April 30, 2026, Board Meeting, authorized NBU to apply to the TWDB for HB500 grant funding for Water Tank Rehabilitation Phase 2.
ISSUE:
The NBU Board of Trustees, on April 30, 2026, Board Meeting, authorized NBU staff apply to the TWDB for HB500 grant funding for Water Tank Rehabilitation Phase 2.
STRATEGIC PLAN REFERENCE:
☐Economic Mobility ☐Enhanced Connectivity ☐Community Identity
☐Organizational Excellence ☒Community Well-Being ☐N/A
FISCAL IMPACT:
There is no direct impact on the City of New Braunfels to apply for the TWDB HB500 grant.
Recommendation
RECOMMENDATION:
NBU staff recommends approval of the application process.