Water and wastewater infrastructure improvements underway through TWDB loans offering near-zero interest rate.
AUSTIN, TX – Austin Water closed on a Clean Water State Revolving Fund loan and a Drinking Water State Revolving Fund loan for a combined $15 million through the financial assistance program of the Texas Water Development Board (TWDB).
The low-interest rates offered by the program allow the utility to make improvements while saving taxpayers millions in financing costs. This newest wave of loans will lock in interest rates as low as 0.45%.
“The interest rate on an assumed 30-year Austin Water revenue bond issued at current market rates would be approximately 3.0%, for perspective,” said Christina Romero Austin Water Division Manager, Financial Services. “So, the near-zero percent interest rates received through the Texas Water Development Board program are helping us make much needed improvements to our infrastructure at tremendous cost savings to the utility and our customers.”
By the Numbers
- 0.45% Interest Rate - Clean Water State Revolving Fund - 30 year-loan for $11.2 million will save the utility between $4.5 to $5 million over 30 years of debt service. Funding will go towards the improvements to the pumping system and rehabilitation of the sludge thickener at the Walnut Creek Wastewater Treatment Plan and replacement of the electric substation at the South Austin Regional Wastewater Treatment Plant
- 0.76% Interest Rate - Drinking Water State Revolving Fund - 30 year-loan for $3.8 million will save the utility between $1.5 to $2 million over 30 years of debt service. Funding will go towards replacement of the pump station electrical feed at the Ullrich Water Treatment Plant and replacement of the North Austin Reservoir and Pump Station.
Affordability and Infrastructure Improvements
Improving affordability and infrastructure stability are components of the utility’s long-term strategic business plan that uses Effective Utility Management strategies to meet the challenges ahead. The utility has chosen to focus on improving Stakeholder Understanding and Support with an emphasis on Affordability, Customer Satisfaction, Employee and Leadership Development, and Infrastructure Stability. Taken together, improvements in these target areas are helping the utility continue to be an industry leader and improve operations and resiliency.
# # #