The Brushy Creek Regional Utility Authority board of directors voted to execute a financing agreement with the Texas Water Development Board for a $16,995,000 bond at its meeting Aug. 28.

The bond will be used for the expansion of a water treatment plant, part of a three-phase regional water system to deliver water from Lake Travis to Cedar Park, Leander and Round Rock, according to documents from the city of Leander.

The BCRUA was created in 2007 to meet the water needs of the three cities. In April, the cities approved an agreement for the design of Phase 1C of the project, which expands the water treatment plant and raw water pump station.

Cedar Park, Leander and Round Rock will split the loan, according to the Leander documents.

Leander City Council agreed to assume a debt of $8.13 million at a meeting Aug. 17. Cedar Park City Council voted to approve its portion of the debt, $4.43 million, at its meeting Aug. 24. Round Rock City Council approved a debt of $4.44 million at its meeting on Aug. 24 as well, according to Round Rock meeting minutes.

Leander Finance Director Robert Powers previously said the loan is split up based on water capacity, and because Leander owns the largest percentage of the water capacity, the city is responsible for the largest portion of the debt.

BCRUA General Manager Tom Gallier said the interest rate on the loan will be determined as the sale of the bond is finalized. The interest rate will be partially subsidized by the State Water Implementation Fund for Texas, making the interest rate potentially lower than 2 percent with a 20-year term, Gallier said.

“We are receiving very competitive interest rates through this,” Gallier said.

The resolution to execute the bond was approved unanimously by BCRUA board members in attendance. Secretary Stephen Thomas was absent at the meeting.

Reporting contributed by Caitlin Perrone and Jennifer Reiley/Community Impact Newspaper.