Up to $3,000,000 in certificates of obligation for lead and galvanized service lines

Item 8.d on the Oct. 13 council agenda asked the council to act on a resolution directing publication of notice of intention to issue up to $3,000,000 in Tax and Utility System Surplus Revenue Certificates of Obligation, Taxable Series 2027, for utility system improvements. The staff memo from the Director of Water Utilities says the money would finance the replacement of public and private water service lines made of either lead or galvanized pipe materials, to comply with the U.S. Environmental Protection Agency's Lead and Copper Rule Revisions, which the memo says require 100% lead pipe replacement within 10 years, beginning in 2027 with final completion by 2037; city staff have set a goal of completion by December 2027, subject to the Texas Water Development Board's review schedule. The memo says the TWDB invited the city in May 2024 to apply for funding up to $14,982,440 at 51% principal forgiveness and 49% loan, and that after the inventory phase the estimated cost of replacement was reduced to approximately $6 million, so the certificates are up to $3,000,000, the city's 49% share. Of the proceeds, approximately $2,872,500 would go to the project fund, with the remainder covering costs of issuance ($67,500) and the TWDB loan origination fee ($60,000). Assuming a 5.00% interest rate and a 20-year term, the memo estimates annual debt service at approximately $245,000 and total debt service at approximately $4,741,583, with a first-year payment in FY27 of approximately $94,583, interest only; the actual rate would be set by the TWDB at closing. The certificates would be sold directly to the TWDB and carry a taxable rate because the program replaces lines on private property. Debt service would be paid solely from Water Utility rate revenues, with no property tax revenues used and no impact on the interest and sinking tax rate, the memo says. If approved, the notice would run in the Weatherford Democrat on Oct. 17 and Oct. 24; the ordinance authorizing the certificates is anticipated before the council on Dec. 15, 2026, with closing with the TWDB anticipated on or about Jan. 14, 2027. Staff recommended adoption of Resolution R2026-21. Whether the council adopted it is not yet on the record: as of 5:25 a.m. Wednesday the Granicus archive showed no clip, video or minutes for the Oct. 13 meeting.

Source: Oct. 13, 2026 City Council agenda, item 8.d, and its staff memo, item number 2026-1089-AR, read 5:25 a.m. Oct. 14; Granicus archive, read 5:25 a.m. Oct. 14