Final Approval on Loan Program for Seawater Desalination Project
Press Release
CORPUS CHRISTI – Corpus Christi City Council gave their final approval for issuing Utility System Revenue Improvement Bonds as security for the first portion of a loan from the Texas Water Development Board (TWDB) for the City’s Seawater Desalination Project. A first reading of the ordinance was approved last week.
The City has been approved for up to $222.5 million through the TWDB State Water Implementation Fund for Texas (SWIFT) loan program that can be used for funding design and construction of a Seawater Desalination Facility to provide a future potable water supply for all customers. The City will use a portion, $11.4 million, to cover costs for environmental data analysis, permits, and other planning tasks. These next steps will provide the final information necessary for the City Council to determine how to proceed forward with the project.
City Council’s decision on using the first portion of the $11.4 million loan will NOT lead to higher water utility rates, and the City will receive a 20% reduction in interest as compared to traditional financing methods for the bonds issued in 2020. The final interest rate guaranteed to the City is 1.996%, saving the ratepayers 64 basis points in interest that equates to $1.5 million over the life of the bonds.