Regional Water System
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Regional Water System Revenue Bonds, Series 2025A; Resolution No. 25-47
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SUBJECT
recommendation
Adopt Resolution No. 25-47 Authorizing the issuance of revenue bonds for the Regional Water System to the Texas Water Development Board (TWDB) and providing funding for the North System Raw Water Pipelines, which consists of the Texoma Raw Water Pipeline No. 2 and Texoma to Leonard Raw Water Pipeline projects.
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PURPOSE
The revenue bond proceeds will be used to fund the North System Raw Water Pipelines projects, which include the Texoma Raw Water Pipeline (RWP) No. 2 and the Texoma to Leonard Raw Water Pipeline (RWP) projects. This is the third and final action required by the Board prior to receiving the funds.
RECOMMENDATION
The Executive Director and NTMWD staff recommend the Board of Directors adopt Resolution No. 25-47, “Resolution Authorizing the Issuance, Sale, and Delivery of North Texas Municipal Water District Water System Revenue Bonds, Series 2025A; and Approving and Authorizing Instruments and Procedures Relating Thereto.”
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Consultant: |
N/A |
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Scope: |
Fund North System Raw Water Pipeline projects in the Regional Water System |
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Project: |
Texoma RWP No. 2 and Texoma to Leonard RWP |
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Amount: |
$641.695 million of 2025 revenue bonds will be issued |
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Committee: |
This item was reviewed by the Finance Committee on September 10, 2025 |
DRIVER(S) FOR THIS PROJECT
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Strategic Objective: |
2.3 Rigorous Financial Management |
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☐ Regulatory Compliance |
☐ Asset Condition |
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☐ Capacity |
☐ Redundancy/Resiliency |
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☐ Relocation or External Requests |
☐ Operational Efficiency |
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☐ Safety |
☒ Administrative |
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☐ Policy |
☐ Other _____________ |
BACKGROUND
• On January 30, 2025, NTMWD submitted an abridged application to the TWDB for financial assistance from TWDB’s SWIFT Program to fund $698.150M in costs for the North System Raw Water Pipelines projects, which include the Texoma Raw Water Pipeline No. 2 and Texoma to Leonard Raw Water Pipeline.
• On April 10, 2025, the TWDB formally invited NTMWD to submit an application.
• On April 24, 2025, NTMWD authorized filing the application for financial assistance. (CAI 25C-21 & Res. 25-17)
• On May 7, 2025, NTMWD submitted a final application to TWDB for financial assistance from TWDB’s SWIFT program to fund $645.039M in costs for the North System Raw Water Pipelines projects.
• On May 20, 2025, the TWDB notified NTMWD that the financial application submitted is considered administratively complete.
• On July 24, 2025, the TWDB authorized the commitment for financial assistance in the amount of $641.695M (TWDB Resolution No. 25-105).
• On August 28, 2025, NTMWD authorized the option to be reimbursed for cash-financed expenditures incurred 60 days prior to, and all future expenditures, in an amount not to exceed $239.060M. (AM 25-6164 & Res. 25-41)
• On August 28, 2025, NTMWD authorized a Financing Agreement with the TWDB. (AM 25-6163 & Res. 25-40)
• TWDB will loan $641.695M to NTMWD from the SWIFT program, with proceeds anticipated to be delivered on or around November 20, 2025.
• Financial assistance under the SWIFT program provides up to a 14% interest rate subsidy for 30-year bonds.
• Total debt service savings for the SWIFT program-funded project are estimated to be $43.022M
• The TWDB SWIFT interest rate is 3.81%. The interest rate was determined at pricing of TWDB’s bonds on September 24, 2025.
• Should NTMWD fail to issue its bonds and close the finance transaction with the TWDB by the expiration dates, NTMWD will lose the TWDB commitment for financial assistance and incur a Post-Pricing Termination Payment penalty of $35,538,033.00 as set forth in the Financing Agreement.
• Representatives from both McCall, Parkhurst and Horton LLP, as well as Hilltop Securities, Inc., will be available at the Board meeting to review the documents and financing procedures.
FUNDING
N/A