The funds come from the Texas Water Development Board's State Water Implementation Fund for Texas program and will be repaid over a 30-year period, Assistant Finance Director Matt Hamilton said.
Why it matters
The expansion will increase treatment capacity by 20 million gallons per day, Hamilton said.
When the project is complete, the water treatment plant will have a capacity of 70 million gallons per day, he said.
Diving deeper
During fiscal year 2023-24, the Water Utilities department applied for and received approval for project funding from the TWDB SWIFT program, according to city documents. The program provides financial assistance to help communities develop and optimize water supplies.
Denton was approved for approximately $195.85 million, which staff chose to break down over five years, city documents state. The $11.24 million will be received in December, Hamilton said.
The bond funds will be repaid at a reduced interest rate from the TWDB of 3.8% over 30 years, per city documents.
Borrowing funds from the TWDB will save the city about $2.3 million, Hamilton said.
Next steps
Hamilton said staff anticipate closing the sale and receiving the funds Dec. 3.
