City Council approves $5.8 Million Bonds for Eagle Pass Water Works System
By: Jose G. Landa
An Exclusive Eagle Pass Business Journal News Story/Copyright 2013
The City of Eagle Pass City Council unanimously approved (5-0) the issuance of $5,795,000 in City of Eagle Pass, Texas Water Works and Sewer System Bonds, Series 2013, at its regular meeting held on Tuesday, April 2, 2013 in Eagle Pass, Texas. Eagle Pass Water Works and Sewer System General Manager Jorge Barrera was accompanied by project engineer, Jaime Kypuros of Tetra Tech, Inc., bond advisor, David Gonzalez of Estrada Hinojosa, and bond counsel, John Aguilera, in making a presentation to the City Council regarding an $8,223,000 Texas Water Development Board project regarding the design and construction of certain water and sewer system maintenance and repairs.
Of the $8,223,000 in funds, the Texas Water Development Board is granting the City of Eagle Pass Water Works and Sewer System a grant of $2,428,000 (30% of $8,223,000) leaving the City of Eagle Pass system to borrow $5,795,000 from the Texas Water Development Board at a low-interest bond rate. The funds will be used by the municipal water works and sewer system to design, plan, and construct certain maintenance and repairs, including the replacement of all water meters to electronic water meters, replacement of over 100,000 linear feet of cast iron pipes, and the maintenance and painting of six water storage tanks. The actual construction and repairs will not commence until 2015.
The $8,223,000 Texas Water Development Board project is the first phase of an overall $30,000,000 plus project requested by the Eagle Pass Water Works and Sewer System to upgrade its municipal water and sewer system in 2015. The bonds will be paid from the utility rate payments by city water and sewer payors and will not require any increase of tax rates. Currently, interest rates are low and the Texas Water Development Board offers interest rates lower than market rates.
City Councilman Rudy Villalpando moved to approve the issuance of the bonds and seconded by City Councilman William “Billy” Davis and approved by Mayor Ramsey English Cantu, Mayor Pro-Tem Asalia Casarez, and City Councilmen Luis E. Sifuentes, William “Billy” Davis, and Rudy Villalpando. The Bond Ordinance will now be presented to the Texas Attorney General’s Office for its review and approval as required by law and after its approval will be forwarded to the Texas Water Development Board for its final approval.
In other City Council agenda items, the City Council interviewed interim City Manager Gloria I. Martinez-Barrientos for the vacant City Manager position as part of their interview process of the eight finalists. No action was taken on this item.
