City of Austin

AUSTIN – Austin Water has received a $55 million commitment from the State Water Implementation Fund for Texas for upcoming Capital Improvement Projects. The first wave of funding, totaling $13 million in low interest loans from the Texas Water Development Board, will allow Austin Water to make major investments in infrastructure improvements while saving millions in financing costs. The funding locks in interest rates as low as 2.895%.
 
“These low-interest loans are critical in keeping the overall cost of construction down,” said Christina Romero, Austin Water’s Acting Assistant Director of Financial Services. “This wave of funding alone will save upwards of $1.5 million in interest over the 20-year loan. These loans allow us to make major improvements and provide reliable service to customers at tremendous value.”
 
In addition, today Austin Water closed a financial transaction that will save an additional $49.6 million. This strategy, known as debt defeasance, saves Austin Water and its customers money by reducing the amount paid towards debt service. This strategy has saved more than $675 million since 2016.
 
Low-interest loans - by the numbers:

• Reducing Water Loss - Polybutylene Line Replacement
  Funding from the State Water Implementation Fund for Texas supports advancing conservation efforts by replacing polybutylene pipes. Polybutylene tubing was commonly used for water service lines from the late 1960s until the mid-1980s. This material can become brittle over time and is prone to leaks. Upgrading these pipes will significantly enhance efficiency and help reduce water loss. Total funds of $45 million have been committed, with $3 million closing on November 19, 2025. The remaining amount will be closed over the next three years and is anticipated to save customers and Austin Water an estimated $2.7 million in financing costs.
   
• Expanding Purple Pipe Infrastructure – Travis Heights Reclaimed Water Main
  Funding of $10 million from the State Water Implementation Fund for Texas will support Austin Water’s Travis Heights Reclaimed Water Main project. This initiative will extend the reclaimed water distribution system and enhance system resilience by connecting two separate service areas of the centralized reclaimed system and save customers $1.1 million in financing costs over the life of the loan.

Austin Water’s award-winning financial strategy balances two essential priorities: responsible debt management and investment in major infrastructure upgrades that strengthen water and wastewater services.

About Austin Water

Austin Water provides safe, reliable, high quality, sustainable and affordable water services that have met the community’s needs for over 100 years. Austin Water services over 1 million people in the Austin metropolitan area across more than 538 square miles. For more information visit www.austinwater.org.