The regional water district that Princeton helps govern is set on Thursday to close a $354.5 million loan from a state water fund and to give its executive director authority to go looking for more surface water, including supplies that may originate outside Texas.
Both items are on the agenda for the North Texas Municipal Water District board, which meets at 2 p.m. Thursday, Oct. 22, at the district's offices at 501 E. Brown St. in Wylie. Princeton is one of the district's 13 member cities, and the district's board roster lists two directors from Princeton.
The loan
Resolution 26-43 would issue $354.475 million in water system revenue bonds to the Texas Water Development Board through its SWIFT program. The money pays for segments D and E of the second Leonard Treated Water Pipeline, part of the third phase of the Bois d'Arc Lake and Leonard water treatment plant project.
According to the staff memo:
- The state board committed $370.77 million in July, and the district approved a $354.475 million financing agreement on Aug. 27.
- The SWIFT interest rate is 4.29%, set when the state priced its own bonds on Sept. 23. The program offers up to a 14% interest rate subsidy on 30-year bonds, and staff estimate debt service savings of $25.4 million.
- This is the board's last required step, and the money is expected around Nov. 19.
- If the district fails to close by the deadlines, it would lose the commitment and owe a $20.7 million termination payment under the financing agreement.
The water search
Resolution 26-46 would authorize the executive director to identify and pursue additional surface water that meets four tests: the water is underused and available, developing it is affordable for the district's ratepayers, it may come from Texas or a neighboring state, and the volume is large enough to justify building raw water lines while lasting 50 years or more.
