Water Utilities Infrastructure Financing to Save Residents $1.6 Million
By Traci Peterson
Posted on April 27, 2017, April 27, 2017

 Residents $1.6 Million

The Arlington City Council recently approved an agreement between Arlington Water Utilities and the Texas Water Development Board (TWDB) that will provide funds for needed sanitary sewer upgrades throughout the city and save residents more than $1.6 million.

The Water Development Board selected Arlington to receive a $5.6 million loan for the replacement of 3.6 miles of aging sanitary sewer mains. Savings come from:

  • An $826,861 portion of the loan will be forgiven because Arlington's plans qualify as a "green" project.
  • The remaining $4,775,000 in assistance is a low-interest loan, with a rate of about 0.88 percent. The low interest rate will save residents an estimated $777,131 over the 20-year term.

In addition to approving the agreement at the April 11 meeting, Arlington City Council also authorized Arlington Water to apply to the TWDB for an additional $12 million in low interest loan funding to finance an electrical upgrade at its John F. Kubala Treatment Plant.

"Maintaining vital infrastructure like sanitary sewer mains and water treatment equipment is a responsibility cities across the U.S. must address. The Texas Water Development Board's programs are giving Arlington a way to accomplish these goals at a much lower cost than conventional options," said Buzz Pishkur, Arlington Water Utilities Director. "With encouragement from the City Council, we plan to continue to pursue opportunities to finance capital investment projects at the lowest cost possible."

Public entities such as Arlington apply annually for funds from the Clean Water State Revolving Fund, which is authorized the federal Clean Water Act. The latest award brings Arlington's total awards from the program to $11.1 million in low interest loans and about $1.8 million in forgivable loans since 2014.

Construction on the sanitary sewer main replacements financed with the low interest loan is set to begin late this year.

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