FOR IMMEDIATE RELEASE
February 23, 2017
(512) 463-0120 office
(512) 497-9411 cell
from TWDB for the City of Corpus Christi
AUSTIN, TX -- Today, the Texas Water Development Board (TWDB) approved a request from the City of Corpus Christi for a $51.3 million loan from the Drinking Water State Revolving Fund to refinance construction of the Mary Rhodes Phase II transmission line.
Corpus Christi originally financed the construction of this project through the issuance of several bonds in the open market. The City requested to refinance these variable rate bonds with funding from the Drinking Water State Revolving Fund (DWSRF) and strictly followed all the requirements of the DWSRF program. TWDB commented today that the City met all required guidelines and that while this type of refinancing rarely happens, this strategy makes good sense for Corpus Christi. Because of this loan and refinancing, the City will save approximately $8.2 million.
Senator Juan "Chuy" Hinojosa issued the following statement:
"I am pleased that the TWDB has approved the City of Corpus Christi to receive a $51.3 million loan to refinance this critical construction project and save our taxpayers about $8.2 million. Water security is one of the most pressing social and economic challenges of our time and is vital to the development of our society and economies.
With these funds, we can safeguard against public health concerns and continue to provide critical water services to meet the demand of our growing local communities. I applaud Corpus Christi for working together towards a unique refinancing strategy and water project."
The City of Corpus Christi’s regional water system serves communities in seven Coastal Bend counties, including Aransas, Bee, Jim Wells, Kleberg, Live Oak, Nueces, and San Patricio. With the population growth of the service area, the City did not have the water resources to meet the increase water demand in the next ten years.
In December 2009, Corpus Christi received a commitment from the TWDB for an $8.0 million deferred loan from the Water Infrastructure Fund for the planning and design of the Mary Rhodes II project. The project consisted of the construction of a new water intake structure, booster pump station, sedimentation basin, and 42 miles of pipeline to transport water from the Colorado River near Bay City in Matagorda County to the Lavaca-Navidad River Authority's existing Lake Texana intake pump station in Jackson County (also known as the West Water Delivery System). The City completed the design of the Mary Rhodes II project in October 2013, began construction of the project in April 2014, and substantially completed the construction in December 2016.