Nine amendments to the Texas Constitution are the only issues on the ballot for Frisco voters for the Nov. 5 election and Frisco Chamber of Commerce officials are urging residents to go to the polls for one amendment in particular: Proposition 6.
Proposition 6 would allow the state to use $2 billion from the state's Rainy Day Fund to help with water projects statewide.
The measure essentially would create a bank for water projects. Communities could borrow money for projects at lower interest rates, for longer terms or receive deferred repayment periods, according to the Texas Water Development Board's website.
"Proposition 6 is basically the funding mechanism to help us get these projects fast-tracked," said MJ Spence, vice president of membership for the chamber.
Frisco and surrounding chamber officials are speaking at local events and using social media to get the word out about importance of voting "yes" for Proposition 6.
Their platform: If Texas fails to move forward with funding water projects, the Texas economy could suffer.
"If it doesn't pass, all of our neighboring states and all of those states that we are trying to bring business from are going to use it against us," Spence said. "Texas is doing so well with our economic growth, especially the North Texas region," Spence said. "We felt like it would be a real negative [if Proposition 6 did not pass].
The need
In Region C, which covers 16 counties including Tarrant, Denton, Collin and Dallas, the population is expected to nearly double by 2060, but the water supply is expected to decline by 3 percent because of sedimentation.
The 2012 state water plan recommends building four new reservoirs to keep up with rapid growth.
Supporters point to the extended drought and projections for water needs in the future, and local experts agree.
Jeff Sober, vice president of Garver Engineering who is helping the chamber understand and promote the Proposition 6 issue, said the state water plan identifies $53 billion of needed infrastructure by 2060. But that plan is not inclusive of all the state's water and wastewater infrastructure projects that will do more than just maintain the current water resources, he said.
"That's just to fund the water plan, so it's less than a quarter of the money needed to fund all water infrastructure projects related to water and wastewater," he said.
Water projects
Sober said the ballot language requires the money be diversified toward specific efforts—33 percent water supply, 23 percent conservation and reuse, 25 percent connecting to existing water sources, 16 percent new water sources and 3 percent groundwater.
"It can't be used wastefully," Frank McIllwain, also a Garver vice president and a member of the Governmental Affairs Committee in Frisco.
Sober said the state will not lose the $2 billion for the economic stimulus fund.
"It's a one-time fund, seed money to create a revolving loan fund, and the state will get paid back on the interest of those funds," Sober said.
McIllwain said often people don't understand the $2 billion is loan money.
"it's not giveaway grant money," McIllwain said. "It's loan money to help communities cash flow and desperately needed water projects."
McIllwain said the rainy day fund will be greater than it is today even if Proposition 6 and a later transportation proposition pass.
"You take $2 billion out and put it in this water program, if it continues at the projected pace, which is a conservative projection, that $2 billion gets replaced in one year," McIllwain said. "It's a growing fund. It's actively replenished by the oil and gas severance tax," he said.
Opposition
According to the Texas Legislative Council's analysis, opponents to the proposition in the Legislature argued that drawing down money from the Rainy Day Fund might negatively affect the state's credit rating.
The proposition sets up two funds—the State Water Implementation Fund for Texas or SWIFT, and the State Water Implementation Revenue Fund for Texas or SWIRFT.
The money would not be available until March 2015.
Opponents also argued that the two new funds are not needed because two constitutionally dedicated water development funds already exist, according to the legislative council's analysis.
"A lot of the people out there who oppose it, it's either economic for them—they don't want to take this money out of the stabilization fund, or they think, well, we shouldn't be putting money at growing water supplies," Sober said. "It's important to note that 23 percent of the requirements is conservation, and while our growth is expected to be so aggressive, our additional water supply needs are growing at only 22 percent. So conservation is a significant portion of that future water supply."
Herman Hill, who also serves on the Governmental Affairs Committee, said opposition he has heard is generally related to taking money from the rainy day fund.
Chamber promotion
Hill said chambers across the region are talking at events to get the vote out.
"Our legislators have spoken through the legislative process and it's on the ballot, so now we need to just vote and move forward to make it happen," Hill said. "This is one of those occurrences where this region is in step, and we are really working very hard and diligently to get this passed, as opposed to assuming it will get passed."
Spence said the goal is to create awareness of the issue.
"We want to keep the economic engine going and we don't want our citizens and taxpayers and especially our small businesses and midsize businesses to be paying the burden of what it's going to cost us," Spence said. "We are going to bring water to Texas, but we don't want our constituents to be paying exorbitant rates for water if we don't fund this proposition."
Hill also pointed out that not every municipality will need to use the funding mechanism because they can go to a bank or another source for a loan. It particularly helps out small municipalities that might not be able to get the kind of loan needed to fund this type of project.
More information about Proposition 6, including a FAQ, is at www.twdb.state.tx.us.
