Texas Border Business
AUSTIN, Texas – Senator Juan “Chuy” Hinojosa is pleased to announce that the Texas Water Development Board (“TWDB”) has approved a request from the Sharyland Water Supply Corporation (“Sharyland WSC”) of $35,910,000 in financial assistance for the construction of certain water system improvements. Sharyland WSC owns and operates three water treatment plants to exclusively serve approximately 90,846 residents residing northwest of the cities of Mission, McAllen, and Edinburg. Sharyland WSC’s project will increase water treatment capacity and address multiple issues with the treatment plants. In addition, the project will also relocate approximately 26.5 miles of waterlines to accommodate road expansion as required by the Texas Department of Transportation (TxDOT).
Sharyland WSC qualified for $10 million in principal forgiveness as a disadvantaged community and a $25.91 million loan from the Drinking Water State Revolving Fund. Unlike the majority of water districts in Texas, Sharyland WSC, as a nonprofit water supply corporation operating under Chapter 67 of the Texas Water Code, cannot levy taxes and must rely on revenue to pay back debt. TWDB reports that no projected rate increase is anticipated by Sharyland WSC with the addition of this debt and the corporation would gain significant benefits from the state program. According to TWDB, Sharyland WSC could save approximately $19 million based on a 30-year maturity schedule.
Although the project is estimated to cost $68.7 million, the remainder of the funds to pay for the project will come from other sources. The project will be completed with $13.32 million in funding from the Environmental Protection Agency through the Water Infrastructure Finance and Innovation Act (WIFIA), a $300,000 grant from the Bureau of Reclamation (USBR), and $19.55 million in cash contribution from the Sharyland WSC, which includes approximately $900,000 in reimbursement from TxDOT.
Senator Hinojosa recognizes the significance of this financial assistance to the future of Mission, McAllen, and Edinburg. He states, “The area Sharyland Water Supply Corporation supplies water to is one of the fastest growing areas in the Rio Grande Valley that needs a capable water provider to meet the needs of those residents and businesses. By investing in the project proposed by Sharyland Water Supply Corporation, we are taking proactive steps to ensure that economic development is not hindered by the lack of clean water.”
Senator Hinojosa extends his congratulations to the Board of Directors of Sharyland WSC for applying for the state funding. He also thanks the TWDB board members and their staff for their support and assistance in making this grant possible.
