The Greenville City Council unanimously agreed Tuesday to award $90.5 million in water and wastewater lien revenue bonds to the Texas Water Development Commission to construct a second water treatment plant to meet anticipated needs.
Lien revenue bonds are a type of bond that is repaid through revenues collected by services related to the project, such as water and sewerage charges.
In April, the City of Greenville received an invitation to apply for funding through TWDB’s Texas Stable Water Deployment Fund program. The application for SWIFT funding was approved in July.
The City of Greenville’s Finance Department expects this loan to be paid off by 2033, as the interest rate is 3.44%, which is an interest rate of 3.95% if the city were to take out an open market loan. We estimate it to be lower than that.
Once built, the new water treatment plant will have an initial capacity of 12 million gallons per day, with the ability to expand to 24 million gallons per day in response to future demand.
TWDB is a state agency responsible for collecting and distributing water-related data, supporting regional water and flood planning, and developing state water and flood plans. TWDB administers cost-effective financial assistance programs for the construction of water supply, wastewater treatment, flood mitigation, and agricultural water conservation projects.
