Denton Public Utilities Board recommends applying for up to $35 million state grant to fund advanced metering

Kyle Pedego, planning and engineering division manager for water utilities, told the Public Utilities Board the Water Supply and Infrastructure Grant (established under House Bill 500 of the 89th Legislature) provides up to 100% grant funding for shovel‑ready water supply and infrastructure projects and requires no local match. "Based on population, Denton is eligible for up to $35,000,000 in grant funding," Pedego said, and staff recommended the board ask city council to authorize submission of an application to the Texas Water Development Board.

Pedego said the grant application deadline is July 30, 2026, and that award notifications are expected in fall 2026, with grant closing in winter 2026 through spring 2027 and construction required to be complete by February 2031. He told the board the AMI implementation program is shovel ready, addresses water loss through advanced metering and leak detection, is scheduled to begin "this year" and has a two‑year implementation timeline. Staff said they are working with Badger Meter to amend the existing contract to include costs eligible under the grant.

Board members asked whether the funding is a true grant and whether the city would need to reallocate previously budgeted debt financing if award is received. Pedego said the TWDB program is a "true grant" in that it requires no local match, though closing documents could impose standard program conditions and reporting requirements. When asked what would happen if a construction deadline were not met, staff said they would follow up with a specific answer during grant closing and compliance discussions.

Board members also confirmed the project covers both residential and commercial accounts and raised timing questions about the AMI program’s planned start and completion dates. After members discussed the recommendation and entertained questions, a board member moved to recommend the resolution and the board voted unanimously to carry the motion.

The board’s recommendation will be considered by Denton City Council at a July 21 meeting; staff said the city manager or designee would be authorized to execute application and acceptance documents if the council approves the resolution and the grant is awarded.

Votes at a glance: the board approved the consent agenda and June 22 minutes earlier in the meeting and then unanimously approved the resolution recommending submission of the TWDB grant application.