PRESENTER: Presenter
Jessica Williams, Chief Financial Officer (NBU)
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SUBJECT: Title
Discuss and consider approval of an Ordinance Authorizing the Issuance of “City of New Braunfels, Texas, Utility System Revenue Bonds, Taxable Series 2026A (Texas Water Development Board - Drinking Water State Revolving Fund Lead Service Line Replacement Program)”; Pledging the Net Revenues of the City’s Waterworks, Sanitary Sewer and Electric Light and Power Systems to the Payment of the Principal of and Interest on Said Bonds; Specifying the Terms and Conditions of Such Bonds; Resolving Other Matters Incident and Related to the Issuance, Payment, Security, Sale and Delivery of Said Bonds, Including the Approval and Execution of a Paying Agent/Registrar Agreement and an Escrow Agreement; and Providing an Effective Date.
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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, at its April 30, 2026, Board Meeting, authorized NBU staff, municipal advisor (SAMCO Capital Markets, Inc.), and bond counsel (Norton Rose Fulbright US LLP) to proceed with the pricing and sale of the Series 2026A Bonds to the TWDB.
ISSUE:
The NBU Board of Trustees, at its April 30, 2026, Board Meeting, authorized NBU staff to proceed with the necessary steps for the issuance of “City of New Braunfels, Texas, Utility System Revenue Bonds, Series 2026A.”
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 issuance of the bonds described above.
Recommendation
RECOMMENDATION:
NBU staff recommends approval of the ordinance.