A $1 billion expansion project for an Austin, Texas, wastewater facility, which moved forward within the town council last week, will be funded partially with revenue bonds.
The financing plan calls for a combination of water and wastewater system revenue bonds, money financing, and potential low-interest loans from the Texas Water Development Board and/or the Environmental Protection Agency’s Water Infrastructure Finance and Innovation Act, consistent with a press release from Austin Water.
The town council on Thursday approved design and construction contracts for the project with work slated to begin next yr on the Walnut Creek Wastewater Treatment Plant, which was inbuilt 1977 and underwent expansions in 1987, 1990, and 2005.
Revenue bonds are included inside the financing plan for a $1 billion expansion project for Austin’s Walnut Creek Wastewater Treatment Plant.
Austin Water
“The expansion is required based on projected future flows of wastewater into the plant, in accordance with Texas Commission on Environmental Quality regulations and the necessities of Texas Administrative Code,” consistent with a city council meeting document.
The project will allow the plant to treat and discharge 100 million gallons per day up from 75 million gallons currently.
The water system serves a 538-square-mile area covering the whole 333-square-mile city and portions of Travis and Williamson counties.
The town’s total water pumpage increased greater than 26% from fiscal 2015 to fiscal 2023, reaching 54.85 million gallons, consistent with offering documents from a water revenue bond refunding sale earlier this yr. Austin Water projects an increase to 57.96 million gallons by fiscal 2029.
The town’s population increased greater than 13% from 2014 to 2023, topping 995,000.
As an element of the expansion, the plant’s disinfection method will be converted from chlorine gas to ultraviolet light with the intention to cut back nutrients that contribute to algae growth inside the Colorado River, where treated water is discharged. The project also includes construction of a wall to protect the plant from floodwaters.
“With these investments, every an element of the treatment process will be enhanced and upgraded, and we will be prepared to serve the growing needs of our city,” Shay Ralls Roalson, Austin Water’s director, said in a press release.
Austin had nearly $2.138 billion of water and wastewater system revenue bonds outstanding as of Sept. 30, consistent with the town’s fiscal 2023 annual comprehensive financial report.
Earlier this yr, the town sold nearly $454.2 million of refunding and improvement bonds that were rated Aa2 by Moody’s Rankings, AA-minus by Fitch Rankings, and AA by S&P Global Rankings.