Marble Falls to take on debt for grant matches

The Marble Falls City Council approved resolutions June 1 to move forward on taking on millions of dollars of debt to meet matching grant obligations for several projects including a new wastewater plant, Avenue N bridge crossing and a tributary bypass project.

As a result, the city will be publishing notices of their intent to seek certificates of obligation (CO’s) in an amount not to exceed $17.809 million. That debt will be paid primarily through hikes in water and wastewater rates over several years as well as from the general fund.

“This debt issuance is specifically for the Texas Water Development Board (TWDB) fund, for flood infrastructure fund, for grant loan financing for the engineering, design and construction of the Backbone by-pass, Avenue N (bridge) and relocation of the wastewater treatment plant projects,” Marble Falls Finance Director Jeff Lazenby said. “The certificates of obligations would be purchased by the board and allow the city to accept additional grant funds to complete these projects.”

The council approved a string of resolutions authorizing City Manager Mike Hodge to be the signatory on agreements with TWDB on funding the projects.

To accept loans and grants to fund the wastewater plant, the city is working within a “window” to continue to meet wastewater treatment plant capacity requirements set by the Texas Commission on Environmental Quality (TCEQ). The approximately $41 million project is expected to have about 3 million gallons per day capacity. A site, in an area behind Walmart, is expected to acquired by the municipality.

“(The planned new wastewater site) is also not currently within city limits, so the plan is once the full site is acquired, we’ll go through the annexation process,” said City Engineer Kasey Paul. “The annexation and permitting will go through the TCEQ, environmental analysis and public hearing process.”

Paul explained that the general guidelines involve 18 months for design and permitting of the wastewater plant, three months for the bid process and two years for plant construction.

Councilman Dave Rhodes has worked closely with city staff on the plant plans.

“We’re meeting our goals for being in the process for design and engineering,” Rhodes said. “We’re meeting our goals for being under construction. We’re not behind.”

The Backbone Creek bypass project, extending through an area adjacent to Marble Falls Elementary School, was identified in the Marble Falls Flood protection planning study that was considered in March 2019 and added to the CIP list last year (2020); an existing 72- inch storm drain pipe “is quite corroded,” Paul told council members.

“This will address that corrosion issue as well as creating a bypass for that tributary. This project will also be done in conjunction with TxDOT,” Paul said of the unnamed tributary which eventually feeds into Backbone Creek. “They’ll be reviewing our plans as long as the project is going through our right-of-way which is how we’re proposing it.”

The flood mitigation measure is expected to divert stormwater runoff away from a series of nearby low-water crossings and some properties identified in the floodplain.

“There’s not room in the right-of-way to divert the full 72-inch pipe, but I think putting in a 42-inch pipe – we’ll figure that out during the initial phases of this project – would still be tremendous help for this flooding issue,” Paul said.

Mayor Richard Westerman said the project could resolve current issues and assist future development.

“I think the whole point of the project is the flood mitigation and the fact that structures won’t be flooded and damaged in much larger numbers that what this would cost,” Westerman said.

Public Works Director James Kennedy added, “By doing this bypass I personally feel those low-water crossings next to the school area will remain open and still passable.”

The Avenue N bridge project, adjacent to Johnson Park, would create an elevated crossing over Backbone Creek on the roadway which serves several Marble Falls neighborhoods such as Pecan Valley leading to and from the city of Meadowlakes. That municipality volunteered to contribute to some of the match funding required in the grant.

Leading up to approvals, most city council members touted the benefits of zero percent interest on the loans, however, one councilman raised questions about accepting every project due to the zero percent interest offer.

Councilman Dave Rhodes said, “We don’t get these grant opportunities often. …That’s kind of why we’re getting a lot of this stuff on our plate.”

Councilman Reed Norman said, “I think it’s good too but if you can get a Corvette for zero percent, and you get a house for zero percent, get a yacht for zero percent, how much can you pay for at zero percent.

“The zero percent is nice, but it’s still money.”

Norman pressed administrators about alternative funding aside from taking on debt as well as accountability to taxpayers if the bypass project causes other issues.

“We definitely got to see a major impact (from the project),” Norman said.

Paul answered, “If council wanted to reject this award and seek another option, I think there’s a risk associated with that in whether we would receive any other funding.

“I don’t know if this award would have the option of being put on hold.”

The next regular city council meeting is at 6 p.m. on Tuesday, June 15 at city hall, 300 Third St. in Marble Falls.