{"MatterTextId":1974,"MatterTextGuid":"82157BD8-FB08-4032-BF5A-C64B9562D003","MatterTextLastModifiedUtc":"2026-10-02T17:36:17.49","MatterTextRowVersion":"AAAAAABRGIA=","MatterTextMatterId":1946,"MatterTextVersion":"1","MatterTextPlain":"Regional Water System\n\n..title\nRegional Water System Revenue Bonds, Series 2026A; Resolution No. 26-43\n..end\n\n\nSUBJECT\n\n..recommendation\nAdopt Resolution No. 26-43 authorizing the issuance of revenue bonds for the Regional Water System to the Texas Water Development Board (TWDB) to provide funding for Bois d’Arc Lake (BDL) and Leonard Water Treatment Plant (WTP) Phase III Leonard Treated Water Pipeline No. 2 Segment D and Segment E projects.\n\n..end\nPURPOSE\n\nThe revenue bond proceeds will be used to fund the BDL/Leonard WTP Phase III Leonard Treated Water Pipeline  No. 2 project in the Regional Water System. This is the final action required by the Board prior to receiving the funds.\n\nRECOMMENDATION\n\nThe Executive Director and NTMWD staff recommend the Board of Directors adopt Resolution No. 26-43, “Resolution Authorizing the Issuance, Sale, and Delivery of North Texas Municipal Water District Water System Revenue Bonds, Series 2026A; and Approving and Authorizing Instruments and Procedures Relating Thereto.” \n\nConsultant:\n\tN/A\t\t\t\t\tScope:\n \tFund BDL/Leonard WTP Phase III Leonard Treated Water Pipeline  No.2 project in the Regional Water System\t\t\t\t\tProject:\n\tBDL/Leonard WTP Phase III – Leonard Treated Water Pipeline No. 2 Segment D & Segment E\t\t\t\t\tAmount:\n\n\t$354.475 million of Series 2026A revenue bonds will be issued\t\t\t\t\tCommittee:\n\tThis item was reviewed by the Finance Committee on April 08, 2026\n\t\t\n\nDRIVER(S) FOR THIS PROJECT\n\nStrategic Objective:\t2.3 Rigorous Financial Management\t\t\n\n☐ Regulatory Compliance\t☐ Asset Condition\n\t\n\t☐ Capacity\t☐ Redundancy/Resiliency\t\t☐ Relocation or External Requests\t☐ Operational Efficiency\t\t☐ Safety\t☒ Administrative\t\t☐ Policy\t☐ Other _____________\t\t\n\nBACKGROUND\n\nOn January 29, 2026, NTMWD submitted an abridged application to the TWDB for financial assistance from TWDB’s SWIFT Program to fund $379.020M in costs for the BDL/LWTP Phase III LTWPL No. 2 project. \nOn April 17, 2026, the TWDB formally invited NTMWD to submit an application.\nOn April 23, 2026, NTMWD authorized filing the application for financial assistance. (CAI 26C-14 and  Res. 26-11)\nOn May 18, 2025, NTMWD submitted its final application to TWDB for financial assistance from TWDB’s SWIFT program to fund $370.770M in costs for the BDL/LWTP Phase III Leonard Treated Water Pipeline No. 2 (LTWPL No. 2) project.  \nOn May 19, 2026, the TWDB notified NTMWD that the financial application submitted is considered to be administratively complete.\nOn July 23, 2026, the TWDB authorized the commitment for financial assistance in the amount of $370.770M (TWDB Resolution No. 26-083).\nOn August 27, 2026, NTMWD authorized a Financing Agreement with the TWDB (AM 26-6283 and Res. 26-29) for financial assistance in the amount of $354.475M.\nOn August 27, 2026, NTMWD authorized the option to be reimbursed for cash financed expenditures incurred 60 days prior to, and all future expenditures, in an amount not-to-exceed $354.475M. (AM 25-6164 and Res. 26-28)\nTWDB will  loan $354.475M to NTMWD from the SWIFT program with proceeds anticipated to be delivered on or around November 19, 2026.\nNTMWD is exempt from the U.S. Iron & Steel provisions for all BDL/LWTP Phase I, II, and III projects per letter from TWDB dated  11/14/2025.\nFinancial assistance under the SWIFT program provides up to a 14% interest rate subsidy for 30-year bonds.\nTotal debt service savings for this SWIFT program funded project are  estimated to be $25.371M. \nTWDB SWIFT interest rate is 4.29%; interest rate was determined at pricing of the TWDB’s bonds on September 23, 2026.\n\n\nShould NTMWD fail to issue its bonds and close the financing  transaction with the TWDB by the expiration dates, NTMWD will lose the TWDB commitment for financial assistance and incur a Post-Pricing Termination Payment penalty of $20,746,793 as set forth in the Financing Agreement.  \nRepresentatives from both McCall, Parkhurst and Horton LLP, as well as Hilltop Securities, Inc., will be available at the Board meeting to review the documents and financing procedures.\n\n\n\nFUNDING \n\nN/A\n","MatterTextRtf":"{\\rtf1\\fbidis\\ansi\\ansicpg1252\\deff0\\deflang1033\\deflangfe1033{\\fonttbl{\\f0\\fswiss\\fprq2\\fcharset0 Arial;}{\\f1\\fmodern\\fprq1\\fcharset128 MS Gothic;}{\\f2\\froman\\fprq2\\fcharset2 Symbol;}}\n{\\colortbl ;\\red255\\green255\\blue255;}\n\\viewkind4\\uc1\\pard\\ltrpar\\b\\f0\\fs24 Regional Water System\\b0\\par\n\\cf1\\par\n\\fs2 ..title\\par\n\\cf0\\b\\fs24 Regional Water System Revenue Bonds, Series 2026A; Resolution No. 26-43\\par\n\\cf1\\b0\\fs2 ..end\\par\n\\pard\\ltrpar\\qc\\cf0\\lang1024\\fs24\\par\n\\lang1033\\par\n\\pard\\ltrpar\\ul\\b SUBJECT\\par\n\\i\\par\n\\cf1\\ulnone\\b0\\i0\\fs2 ..recommendation\\par\n\\cf0\\fs24 Adopt Resolution No. 26-43 authorizing the issuance of revenue bonds for the Regional Water System to the Texas Water Development Board (TWDB) to provide funding for Bois d\\rquote Arc Lake (BDL) and Leonard Water Treatment Plant (WTP) Phase III Leonard Treated Water Pipeline No. 2 Segment D and Segment E projects.\\par\n\\pard\\ltrpar\\qj\\par\n\\cf1\\fs2 ..end\\par\n\\pard\\ltrpar\\cf0\\ul\\b\\fs24 PURPOSE\\i\\par\n\\pard\\ltrpar\\qc\\ulnone\\b0\\i0\\par\n\\pard\\ltrpar\\qj The revenue bond proceeds will be used to fund the BDL/Leonard WTP Phase III Leonard Treated Water Pipeline  No. 2 project in the Regional Water System. This is the final action required by the Board prior to receiving the funds.\\par\n\\par\n\\pard\\ltrpar\\ul\\b RECOMMENDATION\\par\n\\pard\\ltrpar\\qc\\ulnone\\b0\\par\n\\pard\\ltrpar\\qj The Executive Director and NTMWD staff recommend the Board of Directors adopt Resolution No. 26-43, \\i\\ldblquote Resolution Authorizing the Issuance, Sale, and Delivery of North Texas Municipal Water District Water System Revenue Bonds, Series 2026A; and Approving and Authorizing Instruments and Procedures Relating Thereto\\i0 .\\rdblquote  \\par\n\\par\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\pard\\intbl\\ltrpar Consultant: \\cell N/A\\cell\\row\n\\intbl\\cell\\cell\\row\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\intbl Scope:  \\cell Fund BDL/Leonard WTP Phase III Leonard Treated Water Pipeline  No.2 project in the Regional Water System\\cell\\row\n\\intbl\\cell\\cell\\row\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\intbl Project: \\cell BDL/Leonard WTP Phase III - Leonard Treated Water Pipeline No. 2 Segment D & Segment E\\cell\\row\n\\intbl\\cell\\cell\\row\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\intbl Amount: \\cell $354.475 million of Series 2026A revenue bonds will be issued\\cell\\row\n\\intbl\\cell\\cell\\row\n\\trowd\\trgaph108\\trleft-95\\cellx2245\\cellx9350\\intbl Committee:\\cell This item was reviewed by the Finance Committee on April 08, 2026 \\cell\\row\n\\pard\\ltrpar\\b\\par\n\\ul\\par\nDRIVER(S) FOR THIS PROJECT\\par\n\\par\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx2610\\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\pard\\intbl\\ltrpar\\ulnone\\b0 Strategic Objective:\\ul\\b\\cell\\ulnone\\b0 2.3 Rigorous Financial Management\\cell\\row\n\\pard\\ltrpar\\ul\\b\\par\n\\pard\\ltrpar\\qc\\ulnone\\b0\\par\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrt\\brdrw15\\brdrs\\clbrdrl\\brdrw15\\brdrs \\cellx5329\\clbrdrt\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\pard\\intbl\\ltrpar\\f1\\u9744?\\f0  Regulatory Compliance\\cell\\f1\\u9744?\\f0  Asset Condition\\cell\\row\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrl\\brdrw15\\brdrs \\cellx5329\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\pard\\intbl\\ltrpar\\f1\\u9744?\\f0  Capacity\\cell\\f1\\u9744?\\f0  Redundancy/Resiliency\\cell\\row\n\\f1\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrl\\brdrw15\\brdrs \\cellx5329\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\intbl\\u9744?\\f0  Relocation or External Requests\\cell\\f1\\u9744?\\f0  Operational Efficiency\\cell\\row\n\\f1\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrl\\brdrw15\\brdrs \\cellx5329\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\intbl\\u9744?\\f0  Safety\\cell\\f1\\u9746?\\f0  Administrative\\cell\\row\n\\trowd\\trgaph108\\trleft5\\trbrdrt\\brdrs\\brdrw10 \\trbrdrl\\brdrs\\brdrw10 \\trbrdrb\\brdrs\\brdrw10 \\trbrdrr\\brdrs\\brdrw10 \\clbrdrl\\brdrw15\\brdrs\\clbrdrb\\brdrw15\\brdrs \\cellx5329\\clbrdrb\\brdrw15\\brdrs\\clbrdrr\\brdrw15\\brdrs \\cellx9355\\pard\\intbl\\ltrpar\\f1\\u9744?\\f0  Policy\\cell\\f1\\u9744?\\f0  Other _____________\\cell\\row\n\\pard\\ltrpar\\qc\\par\n\\par\n\\pard\\ltrpar\\ul\\b BACKGROUND\\par\n\\pard\\ltrpar\\qc\\ulnone\\b0\\par\n\\pard\\ltrpar\\fi-360\\li720\\f2\\'b7\\tab\\f0 On January 29, 2026, NTMWD submitted an abridged application to the TWDB for financial assistance from TWDB\\rquote s SWIFT Program to fund $379.020M in costs for the BDL/LWTP Phase III LTWPL No. 2 project. \\par\n\\f2\\'b7\\tab\\f0 On April 17, 2026, the TWDB formally invited NTMWD to submit an application.\\par\n\\f2\\'b7\\tab\\f0 On April 23, 2026, NTMWD authorized filing the application for financial assistance. (CAI 26C-14 and  Res. 26-11)\\par\n\\f2\\'b7\\tab\\f0 On May 18, 2025, NTMWD submitted its final application to TWDB for financial assistance from TWDB\\rquote s SWIFT program to fund $370.770M in costs for the BDL/LWTP Phase III Leonard Treated Water Pipeline No. 2 (LTWPL No. 2) project.  \\par\n\\f2\\'b7\\tab\\f0 On May 19, 2026, the TWDB notified NTMWD that the financial application submitted is considered to be administratively complete.\\par\n\\f2\\'b7\\tab\\f0 On July 23, 2026, the TWDB authorized the commitment for financial assistance in the amount of $370.770M (TWDB Resolution No. 26-083).\\par\n\\f2\\'b7\\tab\\f0 On August 27, 2026, NTMWD authorized a Financing Agreement with the TWDB (AM 26-6283 and Res. 26-29) for financial assistance in the amount of $354.475M.\\par\n\\f2\\'b7\\tab\\f0 On August 27, 2026, NTMWD authorized the option to be reimbursed for cash financed expenditures incurred 60 days prior to, and all future expenditures, in an amount not-to-exceed $354.475M. (AM 25-6164 and Res. 26-28)\\par\n\\f2\\'b7\\tab\\f0 TWDB will  loan $354.475M to NTMWD from the SWIFT program with proceeds anticipated to be delivered on or around November 19, 2026.\\par\n\\f2\\'b7\\tab\\f0 NTMWD is exempt from the U.S. Iron & Steel provisions for all BDL/LWTP Phase I, II, and III projects per letter from TWDB dated  11/14/2025.\\par\n\\f2\\'b7\\tab\\f0 Financial assistance under the SWIFT program provides up to a 14% interest rate subsidy for 30-year bonds.\\par\n\\f2\\'b7\\tab\\f0 Total debt service savings for this SWIFT program funded project are  estimated to be $25.371M. \\par\n\\f2\\'b7\\tab\\f0 TWDB SWIFT interest rate is 4.29%; interest rate was determined at pricing of the TWDB\\rquote s bonds on September 23, 2026.\\par\n\\pard\\ltrpar\\par\n\\par\n\\pard\\ltrpar\\fi-360\\li720\\f2\\'b7\\tab\\f0 Should NTMWD fail to issue its bonds and close the financing  transaction with the TWDB by the expiration dates, NTMWD will lose the TWDB commitment for financial assistance and incur a Post-Pricing Termination Payment penalty of $20,746,793 as set forth in the Financing Agreement.  \\par\n\\f2\\'b7\\tab\\f0 Representatives from both McCall, Parkhurst and Horton LLP, as well as Hilltop Securities, Inc., will be available at the Board meeting to review the documents and financing procedures.\\par\n\\pard\\ltrpar\\qj\\par\n\\pard\\ltrpar\\par\n\\pard\\ltrpar\\qc\\par\n\\pard\\ltrpar\\ul\\b FUNDING \\par\n\\i\\par\n\\pard\\ltrpar\\qj\\ulnone\\b0\\i0 N/A\\par\n}\n"}