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HARLINGEN — Officials here are launching the biggest project in Harlingen’s history, borrowing $10 million through a 30-year loan to help fund the first part of a $258 million WaterWorks master plan aimed at overhauling an aging sewer system.
Officials are selling about $10 million in revenue bonds after the Texas Water Development Board granted the city a $10 million low-interest loan last September.
At WaterWorks, officials are planning to request the board grant further funding to help finance the sewer system’s $258 million overhaul.
On Wednesday, WaterWorks interim General Manager David Sanchez could not be reached for comment.
Now, as a result of increased demand, some of the sewer system’s pipes are leading to overflows, officials said.
As part of the board’s Clean Water State Revolving Fund program, the city’s saving $2.4 million, Anne Burger Entrikin, the city’s financial advisor with First Southwest Co., said.
In a presentation, she told commissioners the program offered a 2.557% interest rate, 1.21% lower than the market rate, projected to save the city $2.4 million.
WaterWorks’ revenues are securing the bonds, Burger Entrikin said.
During the 30-year loan’s term, running from 2026 to 2055, the city’s projected to pay $14.2 million in debt service, she said during a July 17 meeting.
Last September, the Water Development Board granted the city the low-interest loan based on records showing Harlingen’s “financials are excellent,” board members told city officials.
As part of the city’s request, Mayor Norma Sepulveda told board members the loan would help the city “lighten the load” for utility customers, helping to reduce water rate increases set to help fund the master plan.
Meanwhile, former WaterWorks General Manager Tim Skoglund told board members the city’s aging sewer system was projected to lead manholes to overflow.
In response, board members described the sewer system’s upgrade as “critical to the community.”
At the time, Skoglund said WaterWorks was planning to use the loan to fund the sewer system project’s design phase.
As part of the $258 million project, officials are planning to upgrade a sewer plant lift station, a central pipeline known as an interceptor, along with trunk lines leading to the main pipeline, he said.
Officials were planning to launch the first leg of construction within 12 to 18 months, he said in an interview last September.
In May, Skoglund left office after seven years on the job as a result of what he described as “disagreements about personal management style.”
Now, the WaterWorks board of directors is searching for a new general manager.
