TRA Takes Advantage of Low Cost Financing for Regional Wastewater System Improvements

Arlington - The Trinity River Authority of Texas has previously determined that the utilization of Texas Water Development Board loans is the most economical alternative for financing regional system capital improvements.

The State Revolving Fund (SRF) loan program administered by the TWDB can provide loans with an interest rate of 0.95 per cent below the open market at the time of issuance. Over the life span of municipal debt, 0.95 per cent will produce significant savings.

At the December 2, 2009 regular meeting of TRA’s Board of Directors, the issuance of debt for capital improvements for three of TRA’s regional wastewater systems was authorized.

This includes an amount not to exceed $371,865,000 for TRA’s Central Regional Wastewater System, $51,100,000 for TRA’s Ten Mile Creek Regional Wastewater System and $19,990,000 for TRA’s Red Oak Creek Regional Wastewater System. These bond sales will fund needed improvements to the treatment plants and the pipeline systems that transport wastewater to each of the three treatment facilities. These are to be issued in multiple installments over the next few years.

The SRF allows entities such as TRA to issue this kind of debt in increments for those improvements that need funding immediately, and delay additional financing until design efforts are completed and funding for construction is required. It also allows users of the SRF to more precisely determine
exactly how much funding will ultimately be required as they move through the advertising, bidding and construction process.

All of TRA’s regional operating projects are independent financial entities and are funded by the customers being served by each system.  Costs attributable to each individual contracting party are determined by metering flows and breaking the total capital and operations and maintenance costs for the project into pro rata shares as determined by the individual customer’s contributions of flow to the regional system. TRA’s CRWS system has 21 customers, the TMCRWS has five customers and the ROCRWS has six customers.

TRA was advised that Standard and Poors had raised their rating to AAA for the CRWS bonds and AA- for the TMCRWS and ROCRWS bonds. AAA is the highest credit rating that can be awarded to entities that issue tax exempt revenue bonds and it is extremely rare and valuable. 

Customers served by TRA’s CRWS Project:

Irving
Grand Prairie
Farmers Branch
Dallas
Carrollton
Arlington
Bedford
Euless
D/FW Airport
Mansfield
Grapevine
Colleyville
N. Richland Hills
Hurst
Coppell
Fort Worth
Keller
Duncanville
Cedar Hill
Southlake
Addison

Customers served by TRA’s ROCRWS Project:

Cedar Hill
DeSoto
Lancaster
Ovilla
Glenn Heights
Red Oak

Customers served by TRA’s TMCRWS Project:

Cedar Hill
DeSoto
Duncanville
Lancaster
Ferris

For more information contact John Jadrosich, 817-467-4343 or jadrosichj@trinityra.org