FORT WORTH STAR TELEGRAM

Texas constitutional amendment would help water projects in D-FW, statewide

Posted Friday, May. 06, 2011

By Bill Hanna
billhanna@star-telegram.com

Texans can vote on a constitutional amendment in the fall to approve a revolving $6 billion Texas Water Development Board bond program that could be used to pay for major water and wastewater projects statewide.

Senate Joint Resolution 4, sponsored by Sen. Juan "Chuy" Hinojosa, D-McAllen, is designed to increase the board's bonding authority, allowing cities, counties and water providers to fund projects more cheaply than if they were forced to do it on their own.

If the amendment fails, one of the water board's main ways to assist local projects will dry up. A $2 billion bond program approved in 2001 is almost tapped-out.

"It will run out at the end of this fiscal year," said state Rep. Allan Ritter, R-Nederland, who substituted SJR4 for his own House version, HJR137, late Thursday. The Senate passed it in April, and the House passed it 141-1.

Entities such as the Tarrant Regional Water District have benefited from the bond program. The water district received $101 million to help design and plan the $2.4 billion integrated pipeline project with Dallas. The water district was loaned money with some interest and principal payments deferred and the rest repaid at a lower interest rate.

"We can get a subsidy that lessens the cost of these huge projects, which lessens the cost to the citizens of the communities we serve," said Linda Christie, the water district's director of government and community relations.
The bonding authority is also a key component of water infrastructure projects needed for the State Water Plan, which is designed to ensure that Texas has enough water over the next 50 years.

The pipeline project fits into the plan because it will bring more water from East Texas and provide enough for the water district's customers until at least 2030 and perhaps 2040.

Heather Harward, executive director of the H2O4Texas Coalition, said that winning passage of SJR4 was the group's top legislative priority and that it will now concentrate on educating voters before the November election. H2O4Texas consists of public and private groups whose goal is to fund the State Water Plan.

"I think it's incredibly significant," Harward said. "Had we not passed SJ4, the effects would have been devastating."
If approved by voters, the bonding authority would be self-sustaining. It would not require further approval by the Legislature or voters.

"It will inject certainly into the process," Harward said. "As the Water Development Board is paid back, they can loan that money out again."

Bill Hanna, 817-390-7698