Texas Water Development Board – October 1, 2020

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The Texas Water Development Board held a board meeting on October 1, 2020, in order to discuss the adoption of several items, including their Legislative Appropriations Request for FY 2022-23, a resolution concerning lending scale rates for SWIRFT, an amendment to Texas Administrative Code relating to Loan Closing for the RWAF program, designate representatives to serve on regional flood planning groups, and approved by resolution financial assistance in the amount of $11,000,800 in multi-year financing, consisting of a $3,926,000 zero-interest loan and $7,074,800 in loan forgiveness from the Clean Water State Revolving Fund, to the City of Iola (Grimes County). A full agenda and link to the meeting recording can be found here.

This report is intended to give you an overview and highlight of the discussions on the various topics the committee took up. It is not a verbatim transcript of the hearing, but 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.

Item 1 – Legislative Appropriations Request

Chris Hayden

Presenting PDF summary of LAR
2 Sections to Base request: funding for agency operations, and debt service
Total of $469million dollars
GR: $118 million
Fed funds: $95million
Other Funds: $128 million + $129 million
5 capital budget projects
- Computer resources acquisition
- Strategic mapping
- State Data Center
- Transportation Items
- CAPPS Continuation
Total Cap budget is $8 million
Exceptional Items – 6 total – $10.5 million
Additional pages detail EIRs, Riders, and agency priorities

Board compliments LAR work

Motion to approve LAR, second

Motion Passes, LAR approved

Item 2 – Lending Rate Scale Establishment for SWIRFT

David Durand – this document

Exec administrator recommending lending rate scale
Board will issue $629 million in bonds, for approx. $731 million in proceeds
Rate of 2.55% true interest cost, lowest rate for bonds in SWIRFT program ever
The proposed lending rates are calculated by yield to maturity on bonds less applicable subsidies and cost additions
Saving $129 million dollars with recommendations for this year, and $1.1 billion for previous bond sales

Board comments on benefits of SWIRFT bonds to affordably fund projects in communities, compliments team on lowest interest rate for the bond program.

Motion and second to approve lending scale for SWIRFT

Motion passes, lending scale approved

Item 3 – Amendment to Texas Administrative Code for RWAF Program

Glenna Bowman

Proposal would authorize executive administrator to accept payments from borrowers in the RWAF program by wire transfer or other acceptable methods to the executive administrator
Board published proposal for comment, no comments received
Executive director recommends approval of this item

Motion and second to approve Amendment to TAC for the RWAF program

Motion passes, Amendment approved

Item 4 – Consider Designating Representatives for Regional Flood Planning Groups

Rene June – this document

Statewide flood planning in Texas is unique – bigger scale
Legislature expanded Board’s role to include flood plans
Created 15 flood planning regions
Board adopted TAC related to flood planning requirements
Board must designate representative to serve on 15 regional groups
12 voting interest categories for each region
600 nominations received, including multiple nominations for the same people
3 flood planning regions do not appear to have interest from members
177 now required instead of 180, 166 voting positions will be filled
No two individuals are represented for the same region and category
11 positions saw either no recommended individuals or those not skilled enough to take those positions
Once operating, the RFPGs will fill spots themselves
Exec Administrator recommends appointing those 166 people named in accompanying documents
Exec Administrator will help set up initial meetings and trainings
Meetings will begin by November
3 key actions: adoption of bylaws, election of chairman, designation of political subdivision to act on their behalf
Without a chair and political subdivision to support them, Board will support their meetings
Groups will develop their own plans by deadlines
Members must represent diverse regional stakeholders
Deadline for plans is Jan. 2023
Board will coalesce these plans into state-wide flood plan for presentation to legislature by 2024

Board thanks for presentation, expresses excitement and support for state-wide flood plan going forward

Motion and second to appoint designated individuals to regional flood planning boards

Motion passes, designated individuals appointed

Item 5 – Resolution for funding new Wastewater system, City of Iola

Tom Barnett – this document

City of Iola is in Grimes County
Individuals currently served by failing individual onsite sewage systems
DHS issued nuisance termination
City is requesting funding for planning, acquisition, and implementation of new wastewater system
This project includes gravity collection, lift stations, and a wastewater treatment plant
City will complete asset management plan
City qualifies for over $7 million in forgiveness as a disadvantaged community, and the remaining loan of $3.9 million is 0% interest financing
City is requesting multi-year commitment
Executive administrator recommends approval of this item

Board comments on good work of the administrator and staff for the loan program, especially for helping a disadvantaged community of ~500 people in a rural area