Regional Water System
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Regional Water System Revenue Bonds, Series 2025B; Resolution No. 25-48
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SUBJECT
recommendation
Adopt Resolution No. 25-48 Authorizing the issuance of revenue bonds for the Regional Water System to the Texas Water Development Board (TWDB) and providing funding for Bois d’Arc Lake (BDL) and Leonard Water Treatment Plant (LWTP) phase III High Service Pump Station - South (HSPS-S) project.
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PURPOSE
The revenue bond proceeds will be used to fund the BDL/LWTP Phase III HSPS-S project in the Regional Water System. 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. 25-48, “Resolution Authorizing the Issuance, Sale, and Delivery of North Texas Municipal Water District Water System Revenue Bonds, Series 2025B; and Approving and Authorizing Instruments and Procedures Relating Thereto.”
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Consultant: |
N/A |
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Scope: |
Fund BDL/LWTP Phase III HSPS-S project in the Regional Water System |
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Project: |
BDL/LWTP Phase III - HSPS-S |
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Amount: |
$239.060 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 $261.345M in costs for the BDL Phase III HSPS-S project, which includes Bois d’Arc Lake and Leonard Water Treatment Plant Expansion and Improvements.
• 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-20 and Res. 25-16)
• On May 7, 2025, NTMWD submitted a final application to TWDB for financial assistance from TWDB’s SWIFT program to fund $240.380M in costs for the BDL/LWTP Phase III HSPS-S project.
• On May 16, 2025, the TWDB notified NTMWD that the financial application submitted is considered to be administratively complete.
• On July 24, 2025, the TWDB authorized the commitment for financial assistance in the amount of $239.060M (TWDB Resolution No. 25-092).
• 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 25-6162 and Res. 25-39)
• On August 28, 2025, NTMWD authorized a Financing Agreement with the TWDB. (AM 25-6161 and Res. 25-38)
• TWDB will loan $239.060M 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 $30.987M.
• 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 $13,239,502 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