Buda, Kyle OK first bond issuances for $214M water project

The cities of Buda, Kyle and San Marcos have given the go-ahead for the first phase of a pipeline construction that will bring much needed water to the cities in coming years.

The Alliance Regional Water Authority (ARWA), formerly the Hays-Caldwell Public Utility Agency (HCPUA), has been working in partnership with the three cities and the Canyon Regional Water Authority since 2008 to secure a long-term water supply to meet future growth in the areas.

The CRWA includes Green Valley Special Utility District, Crystal Clear Special Utility District and County Line Special Utility District.

“Really all of our water issues are because of the growth in the area and the need for additional water to meet that future growth,” Graham Moore, executive director of Alliance Water, said.

The city councils of Buda, Kyle and San Marcos respectively voted during Oct. 17 city council meetings to approve the first set of three bond issuances to fund the pipeline project. With the bond approvals, Alliance Water can begin the first phase of developing the pipeline.

The pipeline will pump water from the Carrizo-Wilcox Aquifer and will bring an additional 13 million gallons of water per day to project members. The pipeline is scheduled for completion by 2023 and will cost $213.4 million.

The Texas Water Development Board (TWDB) agreed in July to finance the project by issuing bonds to members through the State Water Implementation Fund of Texas (SWIFT).

In this first phase, Buda’s contribution will be $1.625 million, while Kyle’s contribution will be $8.995 million, San Marcos’s will be $11.45 million and the Canyon Regional Water Authority’s will be $9.865 million. Each member will contribute to a portion of the total cost in 2017, 2019 and 2021, coinciding with project phasing.

The first phase of the project is known as Phase 1B and will deal with mostly design and planning.

“We’re going to use this first bit of money to move forward with design and easement acquisition of everything we need to build and then we’re going to come back to the cities in two more phases, in the next two years and then in four years, for additional money for actual construction dollars,” Moore said.

Cities will pay back the loans to the TWDB through water rates of Alliance members.

With the areas along the Interstate 35 corridor growing so quickly, it was important to find a solution to providing long-term drinking water to the communities.

Initial efforts to create a regional water authority for the area began in 2003 and HCPUA was formed in 2007. It then transitioned into the Alliance Regional Water Authority in 2017.

While the city of Buda waits for the pipeline to be built, the city entered into a water sharing agreement through Alliance Water with the cities of Kyle and San Marcos.

Through the agreement, Buda will receive an additional one million gallons per day of water in order to meet demand.

“The city of Buda has worked diligently in finding solutions to a plentiful water source,” Buda City Manager Kenneth Williams said in a statement from the city. “Our goal is to be a good neighbor and collaborate to find adequate water sources while being environmentally friendly in increasing efforts toward conservation.”

Sponsors Share of Phase 1B Debt Issuances

2017 …. 2019 …. 2021 …. Total

  • CRWA …. $9,865,000 …. $26,530,000 …. $29,520,000 …. $65,915,000
  • Kyle …. $8,995,000 …. $24,200,000 …. $26,925,000 …. $60,120,000
  • San Marcos …. $11,450,000 …. $30,800,000 …. $34,270,000 …. $76,520,000
  • Buda …. $1,625,000 …. $4,370,000 …. $4,860,000 …. $10,855,000
  • Total …. $31,935,000 …. $85,900,000 …. $95,575,000  …. $213,410,000

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