Agenda No. 8.
CITY COUNCIL MEMORANDUM
| City Council Meeting: | July 21, 2026 |
| Department: | Engineering |
| Subject: | Resolution 26-R-080 - Requesting Financial Assistance from the Texas Water Development Board; Authorizing the Filing of an Application for Assistance (City Engineer Kathryn Woodlee) |
BACKGROUND
Texas House Bill 500 from the 89th Legislative Session appropriated $1.038 billion in funds for water supply and infrastructure projects to the Texas Water Development Board (TWDB). The TWDB is implementing the Water Supply Infrastructure Grant (WSIG) to use the money to fund eligible water projects in the state. This is a one-time opportunity for this funding for communities across the state to receive grant funds with no local match necessary to design and construct water infrastructure and supply projects.
The 24-inch East Live Oak to IH 35 Tank Dedicated Transmission Main Project is identified on the City's Water Master Plan and Capital Improvement Plan. The main will provide a redundant and dedicated feed between the two storage tanks to better supply water to the northern portion of Schertz and will act to reduce pressures in the existing distribution system currently tied directly to an existing 16-inch transmission main. That reduction of pressure is a benefit to customers served from that line and should significantly reduce main breaks and other maintenance issues on the system in that part of the City.
This grant would fund up to $21 million for this water main project.
The 24-inch East Live Oak to IH 35 Tank Dedicated Transmission Main Project is identified on the City's Water Master Plan and Capital Improvement Plan. The main will provide a redundant and dedicated feed between the two storage tanks to better supply water to the northern portion of Schertz and will act to reduce pressures in the existing distribution system currently tied directly to an existing 16-inch transmission main. That reduction of pressure is a benefit to customers served from that line and should significantly reduce main breaks and other maintenance issues on the system in that part of the City.
This grant would fund up to $21 million for this water main project.
GOAL
The goal of Resolution 26-R-080 is to authorize a request for funding from the TWDB for funding through the WSIG grant program for the IH 35 Dedicated Transmission Main project.
COMMUNITY BENEFIT
Application for funding of a major water infrastructure project supports the City's strategic goal of the provision of an adequate water supply now and in the future, along with the objective of protection of the City's financial stability.
SUMMARY OF RECOMMENDED ACTION
Staff recommends that Council approve resolution 26-R-080 authorizing application for TWDB WSIG funds to be used for the IH 35 Dedicated Transmission Main project.
FISCAL IMPACT
The Dedicated Transmission Main project is currently identified in the CIP for a budgetary total of $32.075 million. Funding is currently identified as a combination of bonds and water reserves. The maximum grant amount for a City the size of Schertz (pop. 10,001 to 150,000) is $21 million. While no local match is required for the WSIG opportunity, current funding can be used for costs in excess of awarded grant funds. If the grant application is successful, bond funds in the amount of the grant can be reallocated to fund another project needed by the City.
RECOMMENDATION
Approve Resolution 26-R-080.