Crockett council approves notice to seek $3.4 million in water-line funding

The Crockett City Council on Jan. 2022 approved a resolution to publish notice of intent to issue certificates of obligation so the city can secure funding for a $3.4 million water-line replacement project.

City staff said the package from the Texas Water Development Board’s Drinking Water State Revolving Fund pairs $1,700,000 in principal forgiveness with a $1,700,000 0% interest loan. A consultant briefed council on the timetable and statutory notice requirements that must be published for two consecutive weeks and followed by a 46‑day waiting period before the city can approve the loan commitment.

“It's a 50% grant. The whole project is right at $3,400,000,” a staff presenter said, summarizing the board’s funding determination. The consultant also said the financing instrument chosen is a certificate of obligation, a 30‑year commitment that allows payment from taxes or revenues.

Council members asked whether the funding applies to specific streets; staff said the replacement covers the two state highways through town (Highway 7 East and Highway 21 East) and the square-to-loop area where water lines underlie roads the state will not repave until the lines are replaced. Staff said favorable terms delay principal payments until August 2024, placing budget impact after construction.

The council moved and seconded to approve publishing the notice and was told staff will return to the March meeting to approve the loan commitment and finalize the financing steps.

Next steps: staff will publish the required legal notices and return to council in March with the loan documents and a final request to authorize the certificates of obligation.