Title
Consider a resolution approving and authorizing the Brushy Creek Regional Utility Authority to execute the Financing Agreement with the Texas Water Development Board related to the issuance of contract revenue bonds.
Body
The Brushy Creek Regional Utility Authority (BCRUA) has two large projects underway. The City of Round Rock’s share of those costs is the $90.45 million to be financed.
• The Phase 2 Deep Water Intake project is a permanent raw water intake on Lake Travis which will replace the floating intake that was constructed with Phase 1. The project is scheduled to be complete in 2027. The deepwater intake will have an ultimate capacity of 144.7 million gallons per day (MGD) and will provide a reliable supply of water through the full buildout of BCRUA.
• The Phase 1D water treatment plant expansion will increase capacity at the plant from 32.5 mgd to 42 mgd. This project is scheduled to be complete in late 2024.
In April 2023, the City Council authorized the BCRUA to submit an application to the Texas Water Development Board (TWDB) for funding through the State Water Implementation Fund for Texas (SWIFT). The program will provide discounted interest to finance the City of Round Rock’s portion of the projects.
The Texas Water Development Board (TWDB) formally approved loan for Phase 1D and Phase 2 construction on July 25th. The loan is the first of three phases the BCRUA will access on behalf of Round Rock.
November 2023 $41,750,000
November 2024 31,500,000
November 2026 17,200,000
Total $90,450,000
BCRUA’s Board is required to pass a formal resolution authorizing either the general manager or Board President to execute and return the financing agreement no later than September 7th. Each city is also required to take action authorizing their specific share of the total loan commitment.
Based on TWDB’s schedule, the sequence will be as follows:
09/07/2023 Executed Finance Agreements Due to TWDB
09/27/2023 TWDB Bond Pricing
10/12/2023 TWDB Bond Closing
10/26/2023 Round Rock City Council Approval
11/30/2023 Closing on BCRUA’s Bonds (including Round Rock’s portion)
Using the TWDB SWIFT discounted interest program to finance these improvements will reduce the City’s interest cost by 18% which will result in an estimated present value savings of $3.13 million on this first issue, and an estimated $6.78 million on the total loan.