Wichita Falls targets $9.4m treatment plant rehab as historic drought debt rolls off

Wichita Falls targets $9.4m treatment plant rehab as historic drought debt rolls offThe Texas city is preparing to redirect financial capacity freed up by retiring 2001-era debt toward critical upgrades at its 60-year-old Cypress Water Treatment Plant and the long-term development of Lake Ringgold.

Annual debt service related to a 2001 drought response is dropping from $10 million to $1.1 million, freeing up capacity for new capital projects.

The city has identified $9.4 million in high-priority rehabilitation needs for its Cypress plant, originally built in 1961.

Long-term supply security will rely on the development of Lake Ringgold, which will require significant future funding for land acquisition, engineering, and construction.

The city is planning targeted sewer rate increases to support capital needs and avoid rate shocks during the Lake Ringgold build-out.

The council separately authorized a $20.9 million grant application to the Texas Water Development Board for water infrastructure and supply.

The City of Wichita Falls, Texas, is positioning its water and sewer fund for a wave of new capital investments as a major chunk of historic debt nears retirement. During a June 16 pre-budget workshop, Chief Financial Officer Stephen Cowart outlined the city's strategy to pivot financial capacity toward near-term infrastructure rehabilitation and long-term water security. Annual debt service stemming from a 2001 drought response is dropping from $10 million to just $1.1 million. "I'll be glad to come here in a couple months and tell you that that debt is essentially done," Cowart told the city council. The freed-up capacity will be heavily directed toward the Cypress Water Treatment Plant. Originally built in 1961, the facility requires an estimated $9.4 million in high-priority rehabilitation work. Other near-term capital needs include reverse osmosis pump electronics, a fourth pressure plane expansion, and routine investments in water lines and lift stations. Looking further ahead, the city is advancing the development of Lake Ringgold to ensure long-term supply security. While initial permitting is underway, future phases will require substantial funding for land acquisition, civil engineering, heavy construction, and environmental mitigation. Cowart noted the city will seek partnerships with the Texas Water Development Board (TWDB) and likely issue revenue bonds to finance the reservoir's development. To support these capital requirements and maintain pace with inflation, the city is considering modest utility rate adjustments. Cowart indicated that increases would likely focus on the sewer side of the utility bill to better reflect the true cost of wastewater operations. Currently, the city's combined water and sewer bills average $5.34 per month lower than peer cities in Texas. "If we were to keep our rates flat or lower them, that would increase the gap between where it needed to be, and we'd put in a situation where there needed to be a large increase in those years as we started to build Lake Ringgold," Cowart explained. In parallel with its long-term planning, the city council authorized several immediate water infrastructure actions via its consent agenda. The city authorized a grant application to the TWDB for $20.9 million in water infrastructure and supply funding. Additionally, the council approved a $4.99 million award across 27 bids for the city's annual supply of bulk water and wastewater treatment chemicals, and a construction manager at risk agreement with The Fain Group for the Falls Rehabilitation Project.