Regional Water System
title
Regional Water System Revenue Bonds, Series 2026A; Resolution No. 26-43
end
SUBJECT
recommendation
Adopt Resolution No. 26-43 authorizing the issuance of revenue bonds for the Regional Water System to the Texas Water Development Board (TWDB) to provide funding for Bois d’Arc Lake (BDL) and Leonard Water Treatment Plant (WTP) Phase III Leonard Treated Water Pipeline No. 2 Segment D and Segment E projects.
end
PURPOSE
The revenue bond proceeds will be used to fund the BDL/Leonard WTP Phase III Leonard Treated Water Pipeline No. 2 project in the Regional Water System. This is the 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. 26-43, “Resolution Authorizing the Issuance, Sale, and Delivery of North Texas Municipal Water District Water System Revenue Bonds, Series 2026A; and Approving and Authorizing Instruments and Procedures Relating Thereto.”
|
Consultant: |
N/A |
|
|
|
|
Scope: |
Fund BDL/Leonard WTP Phase III Leonard Treated Water Pipeline No.2 project in the Regional Water System |
|
|
|
|
Project: |
BDL/Leonard WTP Phase III - Leonard Treated Water Pipeline No. 2 Segment D & Segment E |
|
|
|
|
Amount: |
$354.475 million of Series 2026A revenue bonds will be issued |
|
|
|
|
Committee: |
This item was reviewed by the Finance Committee on April 08, 2026 |
DRIVER(S) FOR THIS PROJECT
|
Strategic Objective: |
2.3 Rigorous Financial Management |
|
☐ Regulatory Compliance |
☐ Asset Condition |
|
☐ Capacity |
☐ Redundancy/Resiliency |
|
☐ Relocation or External Requests |
☐ Operational Efficiency |
|
☐ Safety |
☒ Administrative |
|
☐ Policy |
☐ Other _____________ |
BACKGROUND
• On January 29, 2026, NTMWD submitted an abridged application to the TWDB for financial assistance from TWDB’s SWIFT Program to fund $379.020M in costs for the BDL/LWTP Phase III LTWPL No. 2 project.
• On April 17, 2026, the TWDB formally invited NTMWD to submit an application.
• On April 23, 2026, NTMWD authorized filing the application for financial assistance. (CAI 26C-14 and Res. 26-11)
• On May 18, 2025, NTMWD submitted its final application to TWDB for financial assistance from TWDB’s SWIFT program to fund $370.770M in costs for the BDL/LWTP Phase III Leonard Treated Water Pipeline No. 2 (LTWPL No. 2) project.
• On May 19, 2026, the TWDB notified NTMWD that the financial application submitted is considered to be administratively complete.
• On July 23, 2026, the TWDB authorized the commitment for financial assistance in the amount of $370.770M (TWDB Resolution No. 26-083).
• On August 27, 2026, NTMWD authorized a Financing Agreement with the TWDB (AM 26-6283 and Res. 26-29) for financial assistance in the amount of $354.475M.
• On August 27, 2026, 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 $354.475M. (AM 25-6164 and Res. 26-28)
• TWDB will loan $354.475M to NTMWD from the SWIFT program with proceeds anticipated to be delivered on or around November 19, 2026.
• NTMWD is exempt from the U.S. Iron & Steel provisions for all BDL/LWTP Phase I, II, and III projects per letter from TWDB dated 11/14/2025.
• Financial assistance under the SWIFT program provides up to a 14% interest rate subsidy for 30-year bonds.
• Total debt service savings for this SWIFT program funded project are estimated to be $25.371M.
• TWDB SWIFT interest rate is 4.29%; interest rate was determined at pricing of the TWDB’s bonds on September 23, 2026.
• Should NTMWD fail to issue its bonds and close the financing 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 $20,746,793 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