U.S. Water News Online
DALLAS -- Texas voters will be asked to approve a constitutional amendment allowing the Texas Water Development Board to issue up to $2 billion in general obligation bonds for water, wastewater, and flood control projects.
If Proposition 19 is approved Nov. 6, the board will use part of the bond proceeds to make low-interest loans to Texas communities.
Supporters say the bonds are the most cost-effective way for local entities to raise large amounts of money for expensive projects that improve living conditions and aid economic development. The state is able to borrow money at a lower interest rate, passing along the savings to local governments.
``It's good preplanning,'' said Craig Pederson, executive director of the water development board.
``There's no cost to the state in having bonds authorized,'' he said. ``We are lending the state's credit rating to communities that don't have as good a credit rating.''
The board has about $490 million remaining in its bond authorization, which is expected to be depleted by 2005.
``The money will be used for basic, modest-type needs like new wells and new connections,'' Pederson said. ``It's probably not going to build a lot of reservoirs.''
But opponents say the need for more funds is not urgent and the state should wait until the next legislative session before going to voters for authorization.
``The bottom line is we think the proposition may be premature,'' said Ken Kramer, state director for the Sierra Club. ``There is not an immediate need to adopt this proposition now.''
He said water conservation and drought management should be studied as cheaper alternatives to new construction.
The bond money could be used for repairs, improvements, and expansions to existing facilities that may include water towers, transmission lines, water wells, storage reservoirs, and building or upgrading water or wastewater treatment facilities.
``We're talking about everything tied to water and wastewater system improvements,'' said William Madden, chairman of the water development board. ``We have to key up ahead of time because projects take so long from drawing board to application stages.''
The $2 billion is part of $17 billion that regional planning groups have requested for water supply projects alone, Pederson said.
Proposition 19 also will remove the current limitation on the percentage of state participation in regional projects. The state would retain 50 percent ownership. After three years, local participants would begin to buy back the state's interest.
The state also would use proceeds to finance water and sewer projects in areas with high unemployment and low income, such as colonias along the border.
The water development board has issued almost $1 billion in bonds since 1992, nearly two-thirds in the past five years, because of the state's rapid population growth.
Texas' population is expected to increase to nearly 40 million people by 2050.
State officials say Texas' water demands are expected to rise about 18 percent over that time with a need for seven new major reservoirs and other projects such as pipelines to move water around the state.
Without the funding, many communities won't be able to meet growing demand, said Jim Adams, general manager of the San Jacinto River Authority, which serves seven counties in southeast Texas and has borrowed more than $50 million through the state program in recent years.
``This is a continuation of the funds that have been provided by the state since the drought of the mid-1950s,'' he said. ``Without it, smaller cities and providers won't be able to afford to fund future needs.''
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