Highland Haven residents approved a proposition, during the Nov. 4 election, which would allow for $1 million in general obligation bonds (GOs) to upgrade the city's water system.
Proposition A passed by a vote of 121 (66.12%) to 62 (33.88%), according to unofficial Burnet County election results.
Bond proceeds will be used to purchase property for the water system and to fund some system repairs and/or upgrades for the city, officials say.
Texas Commission on Environmental Quality notified the city, which has a population of approximately 450 citizens, about required fixes to its infrastructure.
Officials say their existing plant generator needs to be replaced, along with a build out of one of the municipality’s wells to connect it to the water system.
Other work includes adding variable frequency drives to distribution pump motors.
Once the bond is approved, the board will repay it using water system revenues (enterprise fund); no debt service tax will be created and water rates will not be raised due to the bond, documents stated.
“The first two payments on the bond will be interest-only and funded from General Fund reserves, as outlined in the city’s adopted budget,” according to public notice details about the GOs.
“When the full principal and interest payments begin for the new bond, the city’s current bond will be paid off, and principal and interest for the new bond will be paid from water fund revenues.
“The annual bond payments for the new bond are estimated to be approximately $13,000 less than the current bond payments.”
The property intended for purchase is adjacent to the city’s water plant and contains two water wells for which the city currently holds historical lease agreements and pays royalties.
“The city has planned to purchase this property since 2004 as part of the Comprehensive Plan, to ensure full control over it’s water infrastructure,” documents stated. “Acquiring the property will allow for future water system development if needed and eliminate royalty payments.”
