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The State Water Implementation Fund for Texas Advisory Committee met on December 10, 2019 to receive an overview of the SWIFT program and its implementation across the state. Representatives from the Texas Water Development Board and the Texas Treasury Safekeeping Trust Company provided testimony.

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. This report is not a verbatim transcript of the hearing; it is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

TWDB Panel

Peter Lake

  • SWIFT program is designed to incentivize local development.
  • Two components:
    • SWIFT fund – incentive capital
    • SWIRFT bond issuance vehicle – loan out to political subdivisions
  • We have seen a 48% increase in water dev strategies in the state planning process w/SWIFT.
  • Kolkhorst: Rural areas have tiny budgets. How many rural communities are taking advantage of this?
    • Regionalization helps these communities.
    • We financed a major reservoir that benefits 60+ small communities.

Rebecca Trevino

  • We’ve had 6 transactions since the inception of the program.
  • Total bonds issued are $5.8 billion
  • Fund $6.5 billion worth of projects.
  • Transferred $711 million from SWIFT to SWIRFT
  • Over $1 billion in savings to those seeking financing from us.
  • TWDB can commit to financing projects for future due to Legislature shift of funds from SWIRFT to SWIFT.
  • We anticipate capacity in each of the five decades included in 2012.

Jeff Walker

  • We have funded projects across the state.
  • We also fund projects in state revolving fund.
  • Communities have told us some projects almost pay for themselves by going through SWIFT program.
  • Other entities are being served by our borrowers.
  • Perry: Do you track acres in new water supply.
    • Yes, 1.5 billion acre-feet in new water.
  • Perry: We have another $1.8 billion to finish?
    • Yes.
  • Perry: The $200 million is a depletion for sure, but it is worth it.

Texas Treasury Safekeeping Trust Company

Mike Reissig

  • Presented handout on SWIFT investment portfolio.
  • Because of investment success, the balance of the fund is $1.7 billion.
  • We have recovered from all transfers out of the fund.
  • We are as close to our benchmark as we have ever been.

Committee adjourned.