CWS poised to begin water plant project
By Glynis Crawford Smith
The Highlander
When the Cottonwood Shores City Council meets Thursday night, Nov. 17, it is with the full expectation of approval of a $1.39 million assistance loan from the Texas Water Development Board (TWDB).
The TWDB Board of Directors will meet earlier in the day with an agenda that includes the loan from the Drinking Water State Revolving Fund to finance the planning, design and construction of the city's new water treatment plant expansion project.
The plant to provide water through 547 connections to more than 1,158 citizens is proposed to take the city far into the future with safe drinking water from Lake LBJ.
The proposal will go to the board will support of the TWDB staff, based not only on the need to replace the aging plant, but also based on its “2A” rating on the city's “strong” ability to pay back the loan.
“The utility system produces net revenues of 3.69 times the annual debt service requirements for the first year of principal repayment,” reads the staff recommendation. “This higher coverage level indicates greater flexibility to withstand unforeseen expenses while still assuring repayment of debt.”
It goes on to say that, overall, the city has been able to retain 17 percent of cash reserves since 2011. The water utility maintains liquidity with cash and short-term investments equivalent to
72 days of operating expenses.
The city’s average median household income of $43,750 is 82 percent of the median for the
state overall. The median household income results in a high household cost factor of 2.99 percent,
which is above the industry benchmark of 2 percent of the median household income for water and
wastewater service. A cost factor of 1.25 percent or below is ideal and above 2.5 percent is considered high.
On the Cottonwood Shores agenda Thursday night are proposals from the CWS Evaluation Committee for their Community Development Block Grant (CDBG) services contract. The $275,000 CDBG will offset some of the cost of the new plant.
