FOR IMMEDIATE RELEASE
November 9, 2011
(512) 463-0120 office
(512) 810-1294 cell
AUSTIN — With the passage of Proposition 2, Texas takes a huge step forward in implementing the state's water plan. A growing population requires a greater investment in our water delivery infrastructure. This revolving bond portfolio approved by Texas voters puts the necessary financing tools in the hands of local governments to improve the efficiency and effectiveness of Texas' water system.
Proposition 2 allows for the issuance of self-sustaining bonding authority to finance water projects at the local level. Self-sustaining bonds are repaid by the communities that receive the bond proceeds, keeping the decision-making process to take on the bonds local in scope. These bonds are not repaid using Texas' general revenue.
State Senator Juan "Chuy" Hinojosa, author of the legislation that put Proposition 2 on the ballot, highlighted the benefit to Texans from both a resource delivery and a financial perspective.
"Texas continues to grow - our population is expanding as is the nature of our demand for water. To best secure a sustainable and efficient water delivery system, we need to invest in our water infrastructure today. From water lines, aquifer management, on down to residential hook-ups, these bonds can upgrade Texas' water delivery system to decrease waste and preserve our most valuable natural resource."
"Financially, Texas' Water Development Board, the bond facilitator, has a zero-default record, resulting in the best credit rating available. By giving local government agencies access to the Water Development Board's financial expertise, we can eliminate risks associated with poorly planned projects. Working together, our cities and counties can invest in the future of Texas' water infrastructure while guided by the Water Development Board's outstanding financial track record."
To qualify for these bonds, local governments will need to meet extensive financial criteria as required by the Texas Constitution and current law. Bonds are only issued when the ability to repay bonds has been certified by three state agencies.