Agenda No. 9.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | November 18, 2025 |
| Department: | Finance |
| Subject: | Resolution 25-R-159 - Approving a Bond Order for Cibolo Creek Municipal Authority (S. Gonzalez/J. Walters) |
BACKGROUND
The Cibolo Creek Municipal Authority (CCMA) provides wastewater treatment services for most of the City of Schertz as well as areas outside of the City of Schertz. CCMA operates two wastewater treatment plants, the Odo J. Riedel Regional Water Reclamation Plant which is off of Schaefer Road and serves northern Schertz and the South Plant that as the name implies serves southern Schertz.
Staff presented a worksession item to City Council on April 15, 2025 about the need to move forward in partnership with CCMA to expand the South Plant. Schertz needs an additional 1.375 million gallons per day of capacity in the south plant. Council passed Resolution 25-R-129 on September 16, 2025 to authorize an Interlocal Agreement with CCMA to expand the South Plant. That agreement requires approval from Schertz prior to CCMA issuing any debt associated with the expansion.
CCMA is proposing to issue $8,500,000.00 in contract revenue bonds to pay for the design of the expansion. The estimated construction cost of the expansion to provide Schertz the additional 1.375 million gallons per day is an additional approximately $42,000,000.00.
Staff presented a worksession item to City Council on April 15, 2025 about the need to move forward in partnership with CCMA to expand the South Plant. Schertz needs an additional 1.375 million gallons per day of capacity in the south plant. Council passed Resolution 25-R-129 on September 16, 2025 to authorize an Interlocal Agreement with CCMA to expand the South Plant. That agreement requires approval from Schertz prior to CCMA issuing any debt associated with the expansion.
CCMA is proposing to issue $8,500,000.00 in contract revenue bonds to pay for the design of the expansion. The estimated construction cost of the expansion to provide Schertz the additional 1.375 million gallons per day is an additional approximately $42,000,000.00.
GOAL
Provide funding for the CCMA Treatment Plant expansion to service Schertz residents and businesses in the southern area of Schertz.
COMMUNITY BENEFIT
Expanding the treatment plant capacity will allow for additional development in the region in addition to providing reliable services to existing residents and businesses in the area.
SUMMARY OF RECOMMENDED ACTION
Staff recommends approval of Resolution 25-R-159.
FISCAL IMPACT
This item is to approve issuance of $8,500,000 in debt by CCMA to pay for the design of the treatment plant expansion. Based on the agreement, Schertz will be paying 55% of the annual debt payments over the life of the debt and Cibolo will pay 45%.
These payments are currently estimated to average $368,000 with a grand total of $7,300,000 over the life of the debt for the design portion of the expansion. Funding for these debt payments will come from the Sewer Fee, which was calculated in anticipation of this project.
These payments are currently estimated to average $368,000 with a grand total of $7,300,000 over the life of the debt for the design portion of the expansion. Funding for these debt payments will come from the Sewer Fee, which was calculated in anticipation of this project.
RECOMMENDATION
Staff recommends approval of Resolution 25-R-159