Austin loaned $71M for drinking water, wastewater infrastructure

Austin Water secured a combined $71.1 million in funding through a Drinking Water State Revolving Fund, a Clean Water State Revolving Fund, and a State Water Implementation Fund. These funds come through low-interest loans from the Texas Water Development Board (TWDB).

This newest wave of funding locks in interest rates as low as 0.20 percent and saves the utility and customers millions in financing costs.

“Historically low interest rates coupled with TWDB rate discounts allowed Austin Water to save customers upwards of $13.3 million in financing costs just in this wave of funding alone,” said Christina Romero, division manager of Austin Water’s Financial Services. “We are implementing long term and system-wide renovations and upgrades at a faster pace while lowering long-term financing costs.”

“This funding allows us to make large strategic improvements to our infrastructure for long-term resiliency,” said Shay Ralls Roalson, assistant director of Austin Water’s Engineering Services. “These generational investments towards the modernization of our water and wastewater infrastructure and metering system will help us deliver reliable high-quality water and wastewater service for years to come.”

Drinking Water Funds

$30 million in funding from the Drinking Water State Revolving Fund will go towards upgrading the North Austin Reservoir and Pump Station with a new 8-million gallon ground storage tank and pump station, replacing a reservoir that was originally built in 1912.

A portion of the funding will also go toward construction of state-of-the-art electrical equipment at the Ullrich Water Treatment Plant - Low Service Pump Station, replacing equipment that was original to the plant construction.

Both of these projects will improve water system reliability and resiliency and reduce maintenance costs. The 30-year loan — with an all-in interest rate of 0.28 percent — is expected to save customers and the utility an estimated $7.2 million relative to traditional interest rates.

Wastewater Funds

$23.1 million in funding from the Clean Water State Revolving Fund will go towards improving pumping systems at Walnut Creek Wastewater Treatment Plant as well as rehabilitation of the plant’s sludge thickener system.

A portion of the funding will go towards replacement of the electrical substation at the South Austin Regional Wastewater Treatment Plant. These projects will improve the reliability and resiliency of Austin’s major wastewater treatment facilities.

The 30-year loan — with an all-in interest rate of 0.20 percent — is expected to save customers and the utility an estimated $5.7 million.

Advanced Metering Funds

Lastly, $18 million in funding from the State Water Implementation Fund will go toward a complete modernization of Austin’s water meter infrastructure.

A city-wide initiative, known as MyATXWater, is underway to replace analog water meters with advanced digital meters to give customers more control over their water usage and the ability to closely monitor for leaks within their private system. The advanced meter infrastructure will also provide Austin Water with more real-time analytics about system-wide performance.

The 20-year loan — with an all-in interest rate of 1.49 percent — is expected to save customers and the utility nearly half a million dollars.